Landry's Restaurants, Inc. Announces Closing and Consummation of New $642 Million Financing
December 01 2009 - 8:00AM
PR Newswire (US)
HOUSTON, Dec.1 /PRNewswire-FirstCall/ -- Landry's Restaurants, Inc.
(NYSE: LNY) today announced that it has closed on its offering of
$406.5 million in aggregate principal amount of 11.625% senior
secured notes due 2015 ("New Notes"), as well as a $235.6 million
amended and restated senior secured credit facility ("Credit
Facility") consisting of a $75 million revolving line of credit and
a $160.6 million term loan. The offering of the New Notes was led
by Jefferies & Company, Inc., Deutsche Bank Securities Inc. and
UBS Securities LLC, and the Credit Facility was arranged by Wells
Fargo Foothill, LLC and Jefferies Finance LLC, as co-lead arrangers
and co-bookrunners. Gross proceeds from the New Notes and Credit
Facility will be used to refinance certain of the Company's
existing indebtedness and either for general corporate purposes or,
if consummated, to pay a portion of the merger consideration for
the proposed acquisition of the Company by Tilman J. Fertitta, its
Chairman, President and Chief Executive Officer. The Company has
also notified the trustee under the indenture dated February 13,
2009 covering the Company's 14% senior secured notes due 2011
(CUSIP No. 51508L AFO), that it intends to redeem those notes on
December 30, 2009. There is approximately $295.5 million principal
amount of such notes outstanding, and, with accrued and unpaid
interest, the redemption price will be approximately $311.0
million. The Company is a national, diversified restaurant,
hospitality and entertainment company principally engaged in the
ownership and operation of full-service, casual dining restaurants,
primarily under the names of Rainforest Cafe, Saltgrass Steak
House, Landry's Seafood House, Charley's Crab, The Chart House, and
the Signature Group of restaurants. The Company is also engaged in
the ownership and operation of select hospitality businesses,
including the Golden Nugget Hotel & Casino in Las Vegas and
Laughlin, Nevada. This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, as amended, which are intended to be covered by safe
harbors created thereby. Stockholders are cautioned that all
forward-looking statements are based largely on the Company's
expectations and involve risks and uncertainties, some of which
cannot be predicted or are beyond the Company's control. A
statement containing a projection of revenue, income, earnings per
share, same store sales, capital expenditures, or future economic
performance, or whether the merger agreement will be consummated
are just a few examples of forward-looking statements. Some factors
that could realistically cause results to differ materially from
those projected in the forward-looking statements include the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement with Mr.
Fertitta's acquisition company; the outcome of any legal
proceedings that have been, or may be instituted against the
Company related to the merger agreement; the inability to complete
the merger due to the failure to obtain stockholder approval for
the merger or the failure to satisfy other conditions to completion
of the merger, including the receipt of all regulatory approvals
related to the merger; risks that the proposed transaction disrupts
current plans and operations and the potential difficulties in
employee retention as a result of the merger; the ability to
recognize the benefits of the merger; the effect of local and
national economic, credit and capital market conditions on the
economy in general, and on the gaming, restaurant and hotel
industries in particular; changes in laws, including increased tax
rates, regulations or accounting standards, third-party relations
and approvals, and decisions of courts, regulators and governmental
bodies; litigation outcomes and judicial actions; acts of war or
terrorist incidents or natural disasters; the effects of
competition, including locations of competitors and operating and
market competition; ineffective marketing or promotions,
competition, weather, store management turnover, a weak economy,
higher interest rates and gas prices; negative same store sales; or
the Company's inability to continue its expansion strategy.
Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found
in Landry's 2008 Annual Report on Form 10-K and in Landry's other
filings with the Securities and Exchange Commission (the "SEC")
available at the SEC's Web site at http://www.sec.gov/. Landry's
may not update or revise any forward-looking statements made in
this press release. DATASOURCE: Landry's Restaurants, Inc. CONTACT:
Tilman J. Fertitta, Chairman of the Board, President and CEO, or
Rick H. Liem, Executive Vice President and CFO, both of Landry's
Restaurants, Inc., +1-713-850-1010 Web Site:
http://www.landrysrestaurants.com/
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