Pinstripes Holdings, Inc. (NYSE:PNST), a company specializing in restaurant and entertainment venues with annual revenue of $123.58 million, has entered into several amended loan agreements as of January 17, 2025, according to a recent 8-K filing with the Securities and Exchange Commission. InvestingPro data reveals the company operates with a significant debt burden, with total debt reaching $192.37 million.
The company, alongside its guarantors, modified its existing loan agreement with Oaktree Fund Administration, LLC and associated lenders. The amendment, known as the Oaktree Second Amendment, includes a new $6 million tranche 2 loan and revises the interest rate on term loans to an annual rate of 20%, which can be paid either in cash or in kind. With a concerning current ratio of 0.13 and negative EBITDA of $19.3 million, these refinancing moves are crucial. Get deeper insights into Pinstripes' financial health metrics and 13 additional ProTips with InvestingPro.
Simultaneously, Pinstripes Holdings entered into the Silverview Seventh Amendment with Silverview Credit Partners LP, which reduces the interest rate on term loans to 12.5% per annum for six months and allows for partial payment in kind. The amendment also suspends amortized principal payments for 2025 and removes financial covenants and prepayment premiums.
Additionally, the company amended its loan agreement with GCCP II Agent, LLC through Granite Creek Amendment No. 3. This amendment allows for 3% of the interest on the term loan to be payable in kind or cash and revises the principal installment schedule to decrease quarterly payments through the end of 2025.
As part of these agreements, lenders have agreed to forbear from exercising their rights or remedies concerning certain defaults until February 28, 2025, or upon the occurrence of specific terminating events.
Furthermore, on the effective date of the amendments, Pinstripes Holdings issued warrants exercisable for 349,500 shares of its Class A common stock as part of the financial arrangements. With a current market capitalization of just $19.4 million and the stock trading at $0.38, these securities were issued in a private offering, relying on exemptions from registration under the Securities Act. According to InvestingPro's Fair Value analysis, the stock appears to be undervalued despite its recent financial challenges.
In other recent news, Pinstripes Holdings, Inc. is facing the delisting of its public warrants from the New York Stock Exchange (NYSE), according to a recent SEC filing. This development comes as the company's stock has seen a significant decline, falling over 95% year-to-date.
The affected warrants were issued during the initial public offering of Banyan Acquisition Corp. and are exercisable for Pinstripes Holdings’ Class A common stock at $11.50 per share. The NYSE has suspended trading of these warrants immediately following the notice.
However, the delisting and suspension do not affect the trading of Pinstripes Holdings' Class A common stock, which will continue to be listed and traded on the NYSE, provided the company remains in compliance with the NYSE's continued listing requirements. The company, which operates with a significant debt burden of $192 million, has not yet revealed any plans to address the delisting.
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