Hooters of America (HOA) announced that Hawk Parent, LLC, an indirect parent entity of the Company, has successfully closed on a credit facility with an unaffiliated lender. The Credit Facility provides for a $70 million, 5-year senior secured term loan. The loan has a scheduled maturity date in March 2027 but will amortize on a quarterly basis based on a percentage of available funds to the borrower. HOA has provided a guaranty of the loan (subject to certain limitations under the documentation governing its subsidiaries’ separate securitization financing), which is secured, in addition to other collateral, by its right to receive the equity residual and management fees to the extent payable by its subsidiaries under the securitization. The other financial terms of the loan were not disclosed. The Credit Facility contains customary restrictive covenants, including with respect to the incurrence of indebtedness and liens and the payment of distributions.

The Company intends to use the proceeds of the Credit Facility for working capital and general corporate purposes, fund certain pledged accounts, pay transaction costs and to fund distributions to its ultimate parent entity.