September 9, 2010 / 11:31 AM / 7 years ago

UPDATE 1-Papa John's enters into $175 mln credit facility

2 Min Read

* Says facility includes $75 mln accordion feature

* Says terminated prior facility dated Jan. 31, 2006

Sept 9 (Reuters) - Pizza chain Papa John's International Inc (PZZA.O) said it entered into a new $175 million five-year revolving credit facility, replacing an earlier facility of the same amount.

In a filing with the U.S. Securities and Exchange Commission, the company, which competes with Domino's Pizza Inc (DPZ.N) and Yum Brands Inc's (YUM.N) Pizza Hut, said the credit facility includes a $75 million uncommitted accordion feature.

An accordion feature typically gives the company the right to increase its line of credit or similar type of liability with a lender.

Last month, Louisville, Kentucky-based Papa John's reported an adjusted quarterly profit in line with market expectations and narrowed its fiscal 2010 earnings outlook for a second time. [ID:nSGE6720M2]

Shares of Papa John's, with a market value of about $666 million, closed at $25.39 Wednesday on Nasdaq.

The stock has fallen 12 percent since May, when the company first narrowed its full-year profit view and said it expected restaurant margins to be pressured due to discounting. (Reporting by Vidya Lakshmi in Bangalore; Editing by Anne Pallivathuckal)

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