Luby’s gets five-year term loan, delayed-draw term loan and revolver

By Susanna Moon

Chicago, Dec. 14 – Luby’s, Inc. said it obtained a new senior secured credit agreement on Thursday with MSD Partners, LP, consisting of a $60 million five-year term loan, a $10 million delayed-draw term loan available for nine months after closing and a $10 million revolving credit facility.

The loans have a variable interest rate with scheduled amortization of $10 million in the first two years and $15 million in the third and fourth year, according to a company announcement.

The loans are secured by a first lien on company assets.

Proceeds were used first to repay the outstanding $39.4 million of borrowings and accrued interest on Luby’s credit agreement with its previous bank lenders. Remaining proceeds were used to establish reserves for other commitments and for general corporate purposes.

After the closing, the company had $60 million of term debt and cash on the balance sheet of about $17.8 million.

Luby’s is a Houston-based operator of restaurants.

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