Raymond A. Blanchette, III, President and Chief Executive Officer of Ignite Restaurant Group, stated, “After completing the accounting review process, we believe that our historical financials and current practice reflect appropriate accounting in accordance with GAAP. We regard our duty to have sound reporting controls and reliable financial statements with the utmost seriousness. We are pleased to conclude our review and restatement and are taking the opportunity to invest in additional personnel and infrastructure to enhance our financial and accounting function. We continue to be very excited about our brands, the growth in front of our Company, and the ongoing opportunity we have to create value for our shareholders.”
Additional Information Regarding the Restatement
A detailed discussion of the restatement is included in the Current Report on Form 8-K the Company filed today with the SEC. The Form 8-K includes restated financial statements for the last three fiscal years and for the twelve week periods ended March 28, 2011 and March 26, 2012, revised management’s discussion and analysis covering the same periods, and revised selected financial and operating data for fiscal year 2007 through the twelve week period ended March 26, 2012. The second and third quarter 2012 quarterly reports on Form 10-Q filed today with the SEC also discuss the impact of the restatement on the comparable periods of 2011.
RefinancingThe Company closed on a new five-year $100 million revolving credit facility. The new facility replaces a $74.5 million of term loan debt and a $25 million unused revolving credit facility scheduled to mature in March 2016. The new facility bears interest between 1.25% and 2.25% over LIBOR, with no LIBOR floor. At the closing date of October, 29, 2012, the company’s borrowing rate was reduced by approximately 390 basis points compared to the pre-closing rate under the previous facility. The Company repaid outstanding borrowings under the old facility in full with $29.5 million of cash on hand and proceeds from the new facility. At closing, $45.0 million was outstanding under the new facility. KeyBank National Association and Bank of America, served as joint lead arrangers and joint bookrunners for the new facility.