BJ's Restaurants, Inc. announced that effective January 15, 2021, it entered into an Amendment No. 2 and Waiver to Third Amended and Restated Credit Agreement pursuant to which the company further modified the Third Amended and Restated Credit Agreement dated April 30, 2020, among Bank of America, N.A., JPMorgan Chase Bank, N.A., certain other parties as Lenders, and BofA Securities, Inc. The company previously modified the Credit Agreement pursuant to an amendment dated June 15, 2020. Pursuant to the Amendment, the Line of Credit was reduced by $20,000,000 to $215,000,000, certain changes were made to the Company’s reporting requirements, new financial covenants were introduced, and existing financial covenants were reset. In consideration of the Lenders’ agreement to enter into the January 2021 modification, the Company paid a fee of 12.5 basis points. The Line of Credit may still be increased by up to $100,000,000 at the Company’s request, with the consent of the Administrative Agent and the agreement of one or more Lenders, and upon satisfaction of certain criteria. The criteria now includes an anti-cash hoarding condition prohibiting the company from further borrowing if the Company already is holding $35,000,000 in cash. The Line of Credit continues to be guaranteed by the Company’s subsidiaries and secured by a pledge of the assets of the Company and its subsidiaries, subject to the exclusions of certain assets such as all real property interests. The Line of Credit may be used for working capital and other general corporate purposes. Borrowings under the Line of Credit continue to bear interest at an annual rate equal to either (a) LIBOR plus a percentage not to exceed 3.00% (with a floor on LIBOR of 1.00%), or (b) a percentage not to exceed 2.00% above a Base Rate equal to the highest of (i) the Federal Funds Rate plus 1/2 of 1.00%, (ii) BofA’s Prime Rate, or (iii) one-month LIBOR plus 1.00%, in either case depending on the level of lease and debt obligations of the Company as compared to EBITDA and lease expenses. The Credit Agreement now includes provisions respecting the potential elimination of LIBOR and the introduction of replacement index. Pursuant to the Line of Credit, the Company will be required to pay certain customary fees and expenses associated with maintenance and use of the Line of Credit including letter of credit issuance fees and unused commitment fees. Interest on the Line of Credit is payable monthly and the Line of Credit expires, and all borrowings thereunder must be repaid, on or before November 18, 2022. Under the Amendment, the financial covenants tested under the Line of Credit have changed and certain short-term covenant relief has been given to the Company. The fixed charge coverage ratio and the lease adjusted leverage ratio will not be tested until after the third quarter of 2021, at which time they will be tested based upon the earnings of the Company during the third quarter of 2021. Under a new financial covenant, there will be a one-time test of the earnings of the Company based upon results in May and June 2021. The financial covenant pertaining to the liquidity of the Company will continue to be tested monthly through December 2021, with the company required to meet a monthly fixed amount (which fixed amount declines each month through May 2021 and then increases or stays level through December 2021). The company is subject to certain limits on capital expenditures for 2021 and 2022, with relief from the spending limits being granted if the Company satisfies certain financial covenant levels. The Line of Credit, as amended, contains certain representations and warranties, affirmative and negative covenants and events of default that are customary for credit arrangements of this type, including covenants which, subject to customary restrictions, restrict or limit the Company’s ability to, among other things, create liens, borrow money, pay dividends, conduct stock repurchases and certain other transactions.