CAVA GROUP, INC. 8-K

What Happened

• On March 20, 2026, CAVA Group, Inc. filed an 8-K disclosing Amendment No. 3 to its Credit Agreement (originally dated March 11, 2022) with JP Morgan Chase Bank, N.A. as Administrative Agent. The amendment extends the Credit Facility maturity from March 11, 2027 to March 20, 2031 and increases the aggregate revolving commitments from $75 million to $150 million. Borrowings will bear interest at the company’s option of (i) a base rate plus an applicable margin of 0.00% to 1.25% per annum or (ii) Term SOFR plus a margin of 1.00% to 2.25% per annum, each tied to CAVA’s Total Rent Adjusted Net Leverage Ratio. The Credit Facility is unconditionally guaranteed by the company’s domestic restricted subsidiaries (with certain exclusions) and is secured by a first-priority security interest in substantially all assets and a first-priority pledge of subsidiary capital stock, subject to customary exceptions.

Key Details

• Amendment date: March 20, 2026; original Credit Agreement dated March 11, 2022.
• Maturity extended to March 20, 2031 (previously March 11, 2027).
• Revolving commitments increased to $150 million (from $75 million).
• Interest options: base rate + 0.00%–1.25% or Term SOFR + 1.00%–2.25%, determined by leverage ratio.
• Facility includes customary covenants, representations, negative covenants and events of default; lenders can terminate commitments, accelerate loans and require cash collateral upon default.

Why It Matters

• The extension and larger revolver materially increase CAVA’s available liquidity and push out near‑term refinancing risk, giving the company more runway to fund operations, growth and working capital through 2031.
• The facility is secured and contains covenants that could restrict certain corporate actions (e.g., additional debt, dividends, liens, affiliate transactions) and could lead to acceleration if defaults occur—important considerations for creditors and equity investors assessing financial flexibility and risk.