Cava Group Inc.
03/25/2026 | Press release | Distributed by Public on 03/25/2026 11:55
Material Agreement, Financial Obligation (Form 8-K)
Item 1.01 Entry into a Material Definitive Agreement.
On March 20, 2026, CAVA Group, Inc. (the "Company"), the other loan parties party thereto, the financial institutions listed on the signature pages thereto and JP Morgan Chase Bank, N.A. as administrative agent ("Administrative Agent"), entered into Amendment No. 3 (the "Third Amendment") to the Credit Agreement, dated March 11, 2022, by and among the Company, the lenders from time to time party thereto (the "Lenders") and Administrative Agent (as amended, the "Credit Facility").
The Third Amendment, among other things, extends the maturity date of the Credit Facility from March 11, 2027 to March 20, 2031 and increases the aggregate amount of revolving commitments from $75 million to $150 million.
Borrowings under the Credit Facility will bear interest at a rate equal to, at the Company's option, either (i) a base rate plus an applicable margin of 0.00% to 1.25% per annum or (ii) Term SOFR plus an applicable margin of 1.00% to 2.25% per annum, in each case based on the Company's Total Rent Adjusted Net Leverage Ratio (as defined in the Credit Facility).
The Credit Facility is unconditionally guaranteed by the Company's domestic restricted subsidiaries other than certain excluded subsidiaries. Subject to certain exceptions, the Credit Facility is secured by a first-priority security interest in substantially all of the assets of the Company and the guarantors and a first-priority pledge of the capital stock of each subsidiary guarantor.
The Credit Facility includes customary representations and warranties, affirmative and negative covenants, including limitations on incurring additional indebtedness, the creation of liens, making dividend payments, payments of other indebtedness and investments, and entering into transactions with affiliates, and events of default. If an event of default occurs under the Credit Agreement, the Lenders may terminate the commitments, accelerate all outstanding loans (together with accrued interest, fees and other obligations) and require cash collateralization of outstanding letters of credit.
The above description of the terms of the Third Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Third Amendment, a copy of which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information set forth under "Item 1.01. Entry into a Material Definitive Agreement" above is incorporated herein by reference.
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