Pinstripes Holdings Inc (PNST) News & EventsPNSTPinstripes Holdings Inc

Pinstripes announces letter of intent with Oaktree for recapitalization

Pinstripes announced that it has entered into a binding letter of intent with funds managed by Oaktree Capital Management, an affiliate of the holders of the majority of its outstanding debt. Under the terms of the LOI, Oaktree is providing additional funding on similar loan terms to their prior commitments, and upon closing of the recapitalization transactions contemplated by the LOI will become the majority equity holder of the company and will elect the company's board of directors, with current stockholders retaining an equity interest and additionally being issued warrants providing for potential upside participation. "The company's entry into the LOI follows extensive negotiations with Oaktree as the company sought to maximize value for all of its stakeholders. Once completed, the recapitalization will reduce Pinstripes' cash interest obligations, provide additional liquidity for operations and financial flexibility, and better position the company for long-term success and new store development. Notably, the issuance of warrants to existing stockholders as contemplated by the LOI may enable such stockholders to potentially benefit from growth in the company's value should the business successfully implement its plan. The LOI has been approved by the company's board upon the recommendation of a special committee of the board consisting solely of independent, disinterested directors," the company stated. "We are pleased to announce these transactions, which strengthen our balance sheet and enhance our financial flexibility for the benefit of the company and its key stakeholders - investors, customers, vendors, and team members," said Dale Schwartz, Founder/CEO of Pinstripes. "The last year has proven challenging, and I am grateful for the dedication and hard work of our Pinstripes Team Members. Collectively, this announcement represents an important step in the revitalization of Pinstripes' existing business, and demonstrates the confidence that investors have in our long-term success. We are appreciative of the support we have received from our lenders - Oaktree, Silverview and Granite Creek - and look forward to taking the further steps to improve Pinstripes' business and create substantial value for all our stakeholders."

Pinstripes CFO Querciagrossa steps down

Pinstripes announced Tony Querciagrossa, Chief Financial Officer, is stepping down, effective February 28, 2025, to pursue other opportunities outside the restaurant/entertainment industry. To ensure a smooth transition, Mr. Querciagrossa will assist the Company as need be for a period thereafter. "We are grateful to Tony for his partnership over the last eighteen months as we made the transition to a public company. It was a privilege to work with Tony and we wish him well in his future endeavors", said Schwartz. Querciagrossa added "It's been an honor to be part of the Pinstripes story, including becoming a public company. I look forward to working with Dale and the rest of the management team through the transition to ensure the Company is well-positioned for the future". The Company has commenced a search for a new Chief Financial Officer.

Pinstripes reports Q3 EPS (19c) vs 33c last year

Reports Q3 revenue $35.5M, two estimates $36.38M. Dale Schwartz, Founder and CEO, stated, "We are pleased with our team's ability to successfully execute on our cost reduction initiatives since the start of the fiscal year, allowing us to deliver strong third-quarter venue-level EBITDA margins of over 19%. Moreover, our new stores continued to mature as expected and delivered double-digit venue-level EBITDA margins in the quarter. While we are not satisfied with our top-line results, we continue to believe that our high-quality, connection-oriented dining, entertainment and event venues uniquely position us in the restaurant industry."