By Paul A. Harris
Portland, Ore., May 18 - Mastro's Restaurant, LLC priced a $102 million issue of five-year senior secured notes (expected ratings Caa1/B-) at par to yield 12% on Friday, according to an informed source.
The notes pay a 12% cash coupon. In addition the notes will pay a 3% PIK coupon until the first interest payment date as of which the adjusted last 12 months consolidated cash flow for the two most recently completed consecutive fiscal quarters for which internal financial statements are available is at least $20.4 million.
The quick-to-market deal priced in line with price talk.
Jefferies & Co. Inc. ran the books.
The Woodland Hills, Calif.-based restaurant company plans to use the proceeds to refinance its existing 9¼% senior secured notes.
The company may seek to amend its revolving credit facility to extend its maturity to a date that is not less than six months prior to the maturity date of the notes, according to the informed source.
| Issuers: | Mastro's Restaurant, LLC and RRG Finance Corp.
|
| Amount: | $102 million
|
| Maturity: | June 1, 2017
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies & Co. Inc.
|
| Coupon: | 12% cash with an additional 3% PIK until the first interest payment date as of which the adjusted last 12 months consolidated cash flow for the two most recently completed consecutive fiscal quarters for which internal financial statements are available is at least $20.4 million
|
| Price: | Par
|
| Yield: | 12%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2014, then callable at 109
|
| Equity clawback: | 35% at 112 until June 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | May 18
|
| Settlement date: | May 24
|
| Expected ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 12% cash, 3% PIK
|
| Marketing: | Quick to market
|
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