UPDATE 1-Papa John’s enters into $175 mln credit facility

* Says facility includes $75 mln accordion feature

* Says terminated prior facility dated Jan. 31, 2006

Sept 9 (BestGrowthStock) – Pizza chain Papa John’s International
Inc (PZZA.O: ) said it entered into a new $175 million five-year
revolving credit facility, replacing an earlier facility of the
same amount.

In a filing with the U.S. Securities and Exchange
Commission, the company, which competes with Domino’s Pizza Inc
(DPZ.N: ) and Yum Brands Inc’s (YUM.N: ) Pizza Hut, said the credit
facility includes a $75 million uncommitted accordion feature.

An accordion feature typically gives the company the right
to increase its line of credit or similar type of liability
with a lender.

Last month, Louisville, Kentucky-based Papa John’s reported
an adjusted quarterly profit in line with market expectations
and narrowed its fiscal 2010 earnings outlook for a second
time. [ID:nSGE6720M2]

Shares of Papa John’s, with a market value of about $666
million, closed at $25.39 Wednesday on Nasdaq.

The stock has fallen 12 percent since May, when the company
first narrowed its full-year profit view and said it expected
restaurant margins to be pressured due to discounting.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 1-Papa John’s enters into $175 mln credit facility