Lenders give Logan's debt breathing room, tighten reins on spending

Nashville-based Logan's Roadhouse and banks JPMorgan and Credit Suisse last week amended the terms of the restaurant chain's $30 million debt agreement to give it more breathing room regarding its debt load. Logan's, which had $395 million in long-term debt — more than 1.6 times its equity — as of late April, can now finish its fiscal 2013 with total debt that is six times its adjusted EBITDA. That's up from 5x before.

Similarly, the company's allowed ratio of operating earnings to interest expenses has come down. In return, the amendment to the two-year-old contract limits Logan's annual capital spending to $35 million in fiscal 2013, down from $60 million. That number will stairstep up back to $55 million by fiscal 2016.