Subsequent Events

3 Months Ended

Aug. 25, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On September 18, 2024, the Board of Directors declared a cash dividend of $1.40 per share payable on November 1, 2024 to all shareholders of record as of the close of business on October 10, 2024.

On September 16, 2024, the Company entered into Amendment No. 1 (the Amendment) to the Company’s existing $1,250,000,000 Revolving Credit Agreement, dated as of October 23, 2023 (as amended, the Revolving Credit Agreement), with Bank of America, N.A., as administrative agent, the lenders and other agents party thereto. The Amendment replaces the prior financial covenant (which provided for a maximum consolidated total debt to total capitalization ratio) with a new financial covenant requiring the Company to maintain, measured as of the end of each fiscal quarter, a maximum consolidated leverage ratio of 3.50 to 1.00 (which may be temporarily increased to 4.00 to 1.00 upon the election of the Company as a result of a covered acquisition, subject to customary limitations set forth in the Revolving Credit Agreement). All other material terms and conditions of the Revolving Credit Agreement were unchanged.

On September 16, 2024, the Company entered into a senior unsecured $600 million 2-year Term Loan Credit Agreement (the Term Loan Agreement) with Bank of America, N.A., as administrative agent, the lenders and other agents party thereto, the material terms of which are consistent with the Revolving Credit Agreement, as amended by the Amendment. The Term Loan Agreement provides for a single borrowing on any business day until February 17, 2025 (the Funding Date) and matures on the second anniversary of the Funding Date. The Company has not drawn on the Term Loan as of the date of this filing. The proceeds may be used to finance the Company’s anticipated acquisition of Chuy’s Holdings.