California Pizza Kitchen Announces New Five-Year $150 Million Credit Facility
LOS ANGELES--(BUSINESS WIRE)--California Pizza Kitchen, Inc. (Nasdaq: CPKI) announced today that it has entered into a new $150 million credit facility with a syndicate of banks. The five-year facility includes an option to be increased by up to an additional $50 million and matures on May 7, 2013. The facility replaces the Company's existing $100 million line of credit with Bank of America, N.A. Bank of America, N.A., served as the administrative agent and JPMorgan Chase Bank, N.A. served as syndication agent. Banc of America Securities LLC served as the sole lead arranger and sole book manager.
The proceeds of the new facility will be used for working capital, capital expenditures, share repurchases and other general corporate purposes.
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, stated, "We are very pleased to have secured this financing. Increasing the size of our facility at favorable terms at a time when the credit markets are tough and market conditions are volatile is a testament to the strength of our Company. As always, our Board of Directors is committed to the prudent allocation of capital and ensuring that we are well positioned to generate maximum shareholder returns."
California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain. The Company's full service restaurants feature an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, soups, appetizers and sandwiches. The average guest check is approximately $13.90. As of May 8, 2008 the company operates, licenses or franchises 239 locations, of which 198 are company-owned and 41 operate under franchise or license agreements. The Company also has a licensing agreement with Kraft Pizza Company which manufactures and distributes a line of California Pizza Kitchen premium frozen pizzas.
California Pizza Kitchen, Inc. can be found on the internet at www.cpk.com.
This release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projections of earnings, revenue or other financial items, statements of the plans, strategies and objectives of management for future operations, statements concerning proposed new products or developments, statements regarding future economic conditions or performance, statements of belief and statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate" and similar words.
Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Our actual results may and will likely differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are changing consumer preferences and demands, the execution of our expansion strategy, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our relationships with our distributors and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: California Pizza Kitchen, Inc.