Landry's Restaurants, Inc. (NYSE:LNY) today announced that it has priced an offering of $406.5 million in aggregate principal amount of 11.625% senior secured notes due 2015. The Company will receive gross proceeds of $400.1 million.
The notes will be secured and guaranteed by certain of Landry's subsidiaries. The notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States pursuant to Regulation S under the Securities Act. The closing of the transaction is expected to occur on November 30, 2009, and is subject to customary conditions.
The Company also announced that it is also expecting to close a $235.6 million amended and restated credit facility consisting of a $75 million revolving credit facility and a $160.6 million term loan on November 30, 2009, subject to customary conditions.
These refinancings do not affect the outstanding debt on the Golden Nugget Hotel and Casino of approximately $498.1 million.
The issuance of the notes and amending and restating the credit facility is part of the previously announced refinancing of the existing debt of the Company. The Company plans to use the net proceeds of the offering along with funds to be received from the amended and restated credit facility to refinance its outstanding debt, pay related transaction fees and expenses and for general corporate purposes or, if consummated, for the proposed acquisition of Landry's by Tilman J. Fertitta, its Chairman, President and Chief Executive Officer.
The securities have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
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