US pizza chain Papa Johns International has completed an amended credit agreement to bolster its financial position.
The amended and restated credit agreement with lenders and other agents extends the maturity of Papa Johns’ existing $600m revolving credit facility for a new five-year term. It is now set to expire in 2030.
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The company has also secured a new $200m senior secured term loan, which will also mature in 2030.
The move is set to enhance the company’s liquidity and financial profile, ensuring Papa Johns can continue to advance its strategic goals: boosting sales, reinforcing the economic model of its restaurants, and fostering profitable expansion across the network.
The proceeds from this term loan are earmarked for repaying existing borrowings under the revolving credit facility, which, before the agreement’s closure, mirrored the company’s year-end balance.
Papa Johns president and chief executive officer Todd Penegor stated: “We’re pleased to have reached an agreement that provides us with additional financial strength and flexibility to execute on the important strategic priorities we outlined last year.
“Papa Johns has established a strong foundation for success, including team members and franchisees who are passionate about creating great experiences for our customers. This agreement builds on the early progress we are seeing with our transformation strategy, and supports our continued investment in high-return opportunities that will better position us to deliver on our promise to be the best pizza makers in the business.”
Papa Johns is the world’s third-largest pizza delivery company with more than 6,000 restaurants in 51 countries and territories.
In September 2024, the brand announced a ten-year contract renewal reaffirming PepsiCo as exclusive beverage supplier for Papa Johns’ North American restaurants.
