/PRNewswire-FirstCall/ -- Landry's Restaurants, Inc. (NYSE: LNY) ("Landry's" or the "Company") today announced that it has priced an offering of an additional
aggregate principal amount of 11 5/8% senior secured notes due 2015 (the "Additional Notes"). The Additional Notes will yield net proceeds to the Company of approximately
. The offering of the Additional Notes was led by Jefferies & Company, Inc., as sole book-running manager.
The Company completed an offering of
aggregate principal amount of 11 5/8% senior secured notes due 2015 (the "Initial Notes") on
November 30, 2009
. The Additional Notes have the same terms and will be part of the same series as the Initial Notes, including being secured and guaranteed by certain of the Company's subsidiaries. The closing of the sale of the Additional Notes is expected to occur on
April 28, 2010
The Additional 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 Company plans to use a portion of the net proceeds of the Additional Notes to finance the acquisition of all of the stock of The Oceanaire, Inc. ("Oceanaire") in accordance with a plan of reorganization submitted by the unsecured creditors of Oceanaire in the U.S. Bankruptcy court. This plan provided for the sale of all of the stock of Oceanaire pursuant to an auction process after the Company submitted a stalking horse bid of
and entered into a stock purchase agreement with Oceanaire. The auction concluded on
April 13, 2010
, and the Company was the successful bidder. Confirmation of the plan is scheduled for
, 2010. If the plan is confirmed, the Company expects to close the purchase of Oceanaire's stock shortly thereafter.
The remaining net proceeds, or all of the net proceeds in the event that the acquisition of Oceanaire is not consummated, will be used to repay existing revolver balances and for general corporate purposes.