Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 25

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 spread adjustment of 10 basis points plus a margin of between 250 and 325 basis points depending on the Total Rent Adjusted Net Leverage Ratio. Refer to Note 7, Interest Rate Swaps, for information about the variable-to-fixed interest rate swap agreements.On April 11, 2025 and April 25, 2025, the Company drew $7.0 million and $20.5 million on the Delayed Draw Term Facility. The proceeds were used to fund the acquisitions completed on April 14, 2025 and April 28, 2025 discussed in Note 15, Subsequent Events.Fair Value of DebtThe estimated fair value of the outstanding debt, excluding finance lease obligations and financing obligations, is classified as Level 3 in the fair value hierarchy and was estimated using discounted cash flow models, market yield and yield volatility. The following table includes the carrying value and fair value of the Company’s debt as of the dates indicated:MARCH 30, 2025DECEMBER 29, 2024(in thousands)Carrying ValueFair ValueCarrying ValueFair ValueTerm Facility$97,500 $97,372 $98,125 $97,933 Delayed Draw Term Facility$95,063 $94,938 $95,672 $95,484 Revolving Credit Facility$3,000 $2,996 $— $— Debt CovenantsThe Credit Facility is guaranteed by all of FWR’s wholly-owned subsidiaries and by AI Fresh Parent, Inc., a Delaware corporation and the direct parent company of FWR (“Holdings”), and is secured by associated collateral agreements that pledge a lien on substantially all of FWR’s and each guarantor’s assets, including fixed assets and intangibles, in each case, subject to customary exceptions.

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Table of ContentsFIRST WATCH RESTAURANT GROUP, INC.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Under the credit agreement, FWR (and in certain circumstances, Holdings) and its subsidiaries are subject to affirmative, negative and financial covenants, maintenance of certain ratios, restrictions on additional indebtedness and events of default for facilities of this type (with customary grace periods, as applicable, and lender remedies). FWR was in compliance with covenants under the credit agreement as of March 30, 2025.

7.  Interest Rate Swaps

The Company utilizes interest rate swaps to hedge a portion of the cash