Landry's refinances $642 million in debt

AP News
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Posted: Nov 17, 2009 4:54 PM

Landry's Restaurants Inc., which is being acquired by its CEO, said Tuesday it has refinanced $642 million in debt and may use some of the proceeds to fund its going-private deal.

CEO Tilman Fertitta plans to take the restaurant chain private next year, acquiring all outstanding shares he does not already own. Fertitta currently controls more than half of Landry's shares. Under terms of the deal, Fertitta's company will pay $14.75 per share in cash for Landry's remaining stock.

Landry's, based in Houston, runs restaurants under the names Landry's Seafood House, Chart House, Rainforest Cafe and others as well as hotels and the Golden Nuggets Hotels and Casinos in Nevada.

Landry's said Tuesday it has priced an offering of $406.5 million in 11.625 percent senior secured notes due 2015. The company will receive gross proceeds of $400.1 million. The transaction is expected to close Nov. 30.

The restaurant company also said it expects to amend a credit facility that consists of a $75 million revolving credit facility and a $160.6 million term loan by Nov. 30.

Landry's plans to use the proceeds to refinance debt, pay expenses and fund the deal to take the company private.

Shares fell 20 cents to close at $18.90.