OSI Restaurant amends loan, permitting sale of Asian business

By Sara Rosenberg

New York, Jan. 29 - OSI Restaurant Partners amended its credit facility, allowing for the sale of its Asian business, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The amendment requires that 75% of net cash proceeds from the sale be used to pay down outstanding term loans and the remaining proceeds be reinvested in assets or used to repay term loans.

In addition, the amendment modified the minimum free cash flow covenant. If the company disposes of all or a portion of the Asian business and if, on an annual basis, its rent adjusted leverage ratio equals or exceeds 5.25 to 1.00, the minimum free cash flow requirement will be reduced by a specified percentage of the last 12 months EBITDA attributable to the disposed portion of the Asian business.

Prior to the amendment, on an annual basis, if the rent adjusted leverage ratio was greater than or equal to 5.25 to 1.00, minimum free cash flow was $75 million.

The amendment was completed on Jan. 28.

Deutsche Bank is the administrative agent on the deal.

OSI Restaurant is a Tampa, Fla., casual dining restaurant company.

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