HOUSTON, Oct. 26, 2023 /PRNewswire/ -- RCI
Hospitality Holdings, Inc. (Nasdaq: RICK) announced the
modification of $15.7 million in debt
due October 2024, extending
maturities of the notes to free up more cash to buy back shares.
This was the next large piece of debt set to mature for the
company.
The amended promissory notes will continue to be unsecured at
12% interest, with $9.1 million due
October 1, 2026, interest-only
payable monthly, and $6.6 million due
November 1, 2027, with monthly
payments of interest and principal based on a 10-year
amortization.
Eric Langan, President & CEO
of RCI, said, "Using cash to buy back shares, considering their
attractive free cash flow yield, continues to be highly favorable
versus the after-tax interest rate on the debt."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X:
@RCIHHinc)
With more than 60 locations, RCI Hospitality Holdings, Inc.,
through its subsidiaries, is the country's leading company in adult
nightclubs and sports bars/restaurants. See all our brands at
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,
including, but not limited to, the risks and uncertainties
associated with (i) operating and managing an adult entertainment
or restaurant 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 or restaurant
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, 2022, 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 & 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.