Luby's amends loan; accepts commitment letter for new $80 million loan

By Sara Rosenberg

New York, Nov. 27 - Luby's Inc. amended its credit facility, waiving the quarterly EBITDA covenant violation, changing EBITDA measurement covenants to liquidity and future debt service requirements, increasing the interest rate to Prime plus 250 basis points from Prime plus 150 basis points and extending the maturity to Oct. 31, 2004.

Furthermore, the company accepted a commitment letter from GE Capital Franchise Finance Corp., which would provide an $80 million 15-year term loan that would be used to refinance a large portion of the company's existing debt on or before Jan. 31, 2003, as required by the amendment.

"We are very pleased to have this commitment for long-term financing which will help us further strengthen our financial position," said Christopher J. Pappas, chief executive officer, in a news release. "Converting the majority of our debt to long-term debt allows us to sustain our focus on our current operational priorities at the individual restaurant level without the distraction of dealing with short-term debt maturities."

Bank of America is the administrative agent on the existing loan, which is currently sized at $114.69 million, according to a filing with the Securities and Exchange Commission.

Luby's is a San Antonio cafeteria-style restaurant operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.