Skip navigation

Landry’s initiates tender offer on senior notes; inks $81 million credit agreement

HOUSTON Landry's Restaurants Inc. today started cash tender offers for about $400 million in senior notes due in 2014, which could be called early next year as part of an agreement reached with bondholders in an August 2007 court settlement.

The hospitality company, which is in the midst of being bought out by founder Tilman Fertitta, on Monday said it also had signed an $81 million credit agreement through Wells Fargo Foothill, a division of Wells Fargo & Co., and Jefferies Finance LLC to refinance its debt. The agreement includes a senior credit facility of $50 million and a $31 million term loan for use in paying down debt and for general corporate purposes.

In connection with the tender offers, Landry's said it was working toward the approval of amendments that would lift some of the senior-note covenants. It is making tender offers on $395.7 million in 9.5 percent notes due in 2014 and $4.3 million of 7.5 percent notes due in 2014. The tender offers expire on Jan. 26, unless ended or extended, the company said.

The offer follows a 2007 legal battle that had pitted Landry's against company bondholders who demanded early payment of the $400 million in unsecured notes and claimed the late filing of Landry's 2006 annual report and its first-quarter results violated bond covenants and put the company in technical default. As part of a settlement reached in federal court in August 2007, Landry's bondholders were given the option to call the notes in 18 months, and were offered higher rates. To avoid having the holders call the bonds in February, Landry's must refinance its debt or reach an agreement with investors for a consent payment or new interest rates.

Separately, Fertitta has offered $13.50 per share in a going-private buyout offer that the company's board of directors approved in October. Stockholders still have to approve the deal, which is valued at more than $1 billion, including the company's debt.

Landry's Restaurants operates about 179 restaurants under such brands as Landry's Seafood House, Chart House, Rainforest Cafe and Salt Grass Steak House. It also owns entertainment and gaming venues, including two Golden Nugget Hotel & Casino properties in Nevada.

TAGS: Finance News
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish