HOUSTON, Sept. 30, 2021 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) announced the closing on
a $99.1 million, 5.25% fixed rate,
10-year commercial bank real estate loan (subject to one adjustment
in five years), with a 20-year amortization schedule.
The new loan refinances $85.7
million of existing bank and seller-financed real estate
debt; provides $12.3 million in cash
that will be used to pay off existing, high-interest unsecured
debt, enabling those creditors to provide financing for the pending
acquisition of 11 clubs and related real estate that RCI announced
July 26, 2021; and funds $1.1 million in closing costs.
The new real estate loan will result in a reduction of interest
expense and principal payments by $1.4
million and $3.8 million in
the first year, respectively, and the elimination of $7.1 million in future balloon payments over the
next 24 months.
Eric Langan, President & CEO
of RCI Hospitality Holdings, Inc., said, "We're pleased to execute
this consolidation and refinancing loan at favorable commercial
bank rates and terms."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through
its subsidiaries, is the country's leading company in gentlemen's
clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft.
Worth, Houston,
Miami, Minneapolis, St.
Louis, Charlotte, Pittsburgh, and other markets operate under
brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret,
Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports
bars/restaurants operate under the brand name Bombshells Restaurant
& Bar. Please visit http://www.rcihospitality.com/
Forward-Looking Statements
This press release may contain forward-looking statements that
involve a number of risks and uncertainties that could cause the
company's actual results to differ materially from those indicated
in this press release, including, but not limited to, the risks and
uncertainties associated with (i) operating and managing an adult
business, (ii) the business climates in cities where it operates,
(iii) the success or lack thereof in launching and building the
company's businesses, (iv) cyber security, (v) conditions relevant
to real estate transactions, (vi) the impact of the COVID-19
pandemic, and (vii) numerous other factors such as laws governing
the operation of adult entertainment businesses, competition and
dependence on key personnel. For more detailed discussion of such
factors and certain risks and uncertainties, see RCI's annual
report on Form 10-K for the year ended September 30, 2020, as well as its other filings
with the U.S. Securities and Exchange Commission. The company has
no obligation to update or revise the forward-looking statements to
reflect the occurrence of future events or circumstances.
Media and Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.