Landry's gets needed two-thirds consents for 11 5/8% notes due 2015

By Susanna Moon

Chicago, April 9 - Landry's, Inc. said holders tendered more than two-thirds of its outstanding $655.5 million of 11 5/8% senior secured notes due 2015 by the consent deadline at 5 p.m. ET on April 6.

The company executed a supplemental indenture to amend the notes to release all of the collateral that secures the notes and eliminate substantially all of the restrictive covenants as well as some events of default, according to a press release.

The amendments will become operative on the early settlement date.

As previously noted, the total purchase price is $1,120 per $1,000 principal amount of notes tendered by the early deadline. This includes a consent payment of $30 per $1,000 of notes.

Holders will also receive accrued interest up to the settlement date.

Those who tender their notes must consent to the proposed amendments.

The company previously said it need consents from the holders of at least two-thirds of the outstanding notes, excluding notes held by Landry's or any of its affiliates.

The tender offer will continue to run until midnight ET on April 20. The offer began on March 26.

Holders who tender their notes after the consent deadline will not receive the consent premium.

The tender offer is conditioned on the receipt of tenders for at least two-thirds of the outstanding notes and the receipt of enough funds from refinancing transactions to purchase the tendered notes as well as repay some of Landry's and its affiliates' outstanding debt.

Landry's launched a $950 million six-year term loan B on March 27 with original issue discount talk of 981/2, as reported by Prospect News. Price talk on the loan came out last week at Libor plus 475 basis points with a 1.25% Libor floor, and there is 101 soft call protection for one year. The company's $1.4 billion credit facility also includes a $250 million five-year revolver and a $200 million five-year term loan A, both talked at Libor plus 400 bps.

The dealer manager and solicitation agent is Jefferies & Co., Inc. (888 708-5831 or 203 708-5831). The information agent and tender agent is Deutsche Bank Trust Co. Americas (800 735-7777).

Landry's is a restaurant, hospitality and entertainment company based in Houston.

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