BRINKER INTERNATIONAL, INCEAT

BRINKER INTERNATIONAL, INC Debt Disclosure

10-KFiled Aug 15, 20252 min read
Long-term debt consists of the following:
June 25, 2025June 26, 2024
8.25% notes
$350.0 $350.0 
5.00% notes(1)
— 350.0 
Revolving credit facility— — 
Finance lease obligations97.6 105.4 
Total long-term debt447.6 805.4 
Less: unamortized debt issuance costs and discounts(4.0)(5.0)
Total long-term debt, less unamortized debt issuance costs and discounts443.6 800.4 
Less: current installments of finance lease obligations(2)
(17.6)(14.1)
Total long-term debt, less current portion$426.0 $786.3 
(1)On October 1, 2024, the 5.00% notes matured and were repaid in full using borrowings under our revolving credit facility.
(2)Current installments of finance lease obligations, for the periods presented, are recorded within Other accrued liabilities in the Consolidated Balance Sheets. Refer to Note 5 - Accrued Liabilities for further details.
Excluding finance lease obligations and interest, our long-term debt maturities for the five fiscal years following June 25, 2025 and thereafter are as follows:
Fiscal YearLong-Term Debt
2026$— 
2027— 
2028— 
2029— 
2030— 
Thereafter350.0 
$350.0 
8.25% Notes
In fiscal 2023, we issued $350.0 million of 8.25% senior notes due July 15, 2030. The 8.25% notes require semi-annual interest payments in arrears, on each January 15 and July 15, which began on January 15, 2024.
Revolving Credit Facility
On May 1, 2025, we amended our $900.0 million revolving credit facility to increase the capacity to $1.0 billion. The Company incurred and capitalized $3.6 million of debt issuance costs associated with the revolving credit facility during fiscal 2025, which are included in Other assets in the Consolidated Balance Sheets.
The $1.0 billion revolving credit facility, as amended, matures on May 1, 2030 and bears interest of SOFR plus an applicable margin of 1.25% to 2.00% and an undrawn commitment fee of 0.20% to 0.30%, both based on a function of our debt-to-cash-flow ratio. As of June 25, 2025, our interest rate was 5.82% consisting of SOFR of 4.32% plus the applicable margin and spread adjustment of 1.50%. As of June 25, 2025, there was $1.0 billion available under the revolving credit facility.
Financial and Other Covenants
The 8.25% notes contain certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indentures) to (i) create liens on Principal Property
(as defined in the indenture) and (ii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions and limitations.
Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of June 25, 2025, we were in compliance with our covenants pursuant to the $1.0 billion revolving credit facility and under the terms of the indentures governing our 8.25% notes.

Historical Timeline

Fiscal YearFiled
2025Aug 15, 2025Showing above
2024Aug 21, 2024
2023Aug 23, 2023
2022Aug 26, 2022
2021Aug 26, 2021
2020Aug 24, 2020
2019Aug 22, 2019
2018Aug 27, 2018
2017Aug 28, 2017
2016Aug 29, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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