Famous Dave's Closes on New $30.0 Million Credit Facility
MINNEAPOLIS, Apr 17, 2008 (BUSINESS WIRE) -- Famous Dave's of America, Inc. (Nasdaq: DAVE) today announced that it has expanded its existing revolving credit facility to $30.0 million from $20.0 million. The expanded line of credit, which will renew the company's original five-year term, extends the company's relationship with Wells Fargo Bank, NA. The credit facility is available for general working capital purposes as well as for the repurchase of shares under the company's share repurchase program.
"We are pleased with this expanded line of credit, which represents a vote of confidence for Famous Dave's, particularly given the restrictive credit environment in which most businesses are now operating," said Diana Purcel, Famous Dave's of America chief financial officer. "This new credit facility, which offers us improved interest rates and the ability under certain conditions to increase our borrowings up to $50 million, will provide us with additional financial flexibility to execute our growth strategy and to buy back our stock when conditions permit."
Famous Dave's will release its first quarter earnings on April 23, 2008, with a conference call April 24, 2008.
About Famous Dave's of America, Inc.
Famous Dave's of America, Inc. (Nasdaq: DAVE) develops, owns, operates and franchises barbeque restaurants. The company currently owns 45 locations and franchises 123 additional units in 35 states. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Statements in this press release that are not strictly historical, including but not limited to statements regarding cash flow and development plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company's actual results to differ materially from expected results. Although Famous Dave's of America, Inc. believes the expectation reflected in any forward-looking statements is based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction plans, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company's SEC reports.
SOURCE: Famous Dave's of America, Inc.