Darden raises consent fee for 6% notes due 2035, 6.8% notes due 2037

New York, July 6 – Darden Restaurants, Inc. said it increased the fee on offer in its solicitation of consents to amend its $150 million 6% senior notes due 2035 and its $300 million 6.8% senior notes due 2037.

The company is now offering $10.00 per $1,000 principal amount, up from $5.00 originally.

Previously Darden had extended the expiration date to 5 p.m. ET on July 9 from 5 p.m. ET on July 2, according to a company press release.

As announced on June 23, the solicitation is intended to provide the company with the flexibility to enter into sale and leaseback transactions as part of its recently announced real estate strategy.

The proposed amendments are not a condition to the real estate strategy, the company noted.

Specifically, the proposed amendments would amend the sale and leaseback basket in the note indenture by replacing it with a fixed maximum amount of $700 million and removing the variable basket component of 10% of consolidated capitalization of the company.

The proposed amendments mean that the basket for sale and leaseback transactions would be increased to an attributable value of $700 million, which represents an increase of about $220 million when compared to the existing attributable value permitted to be incurred as of May 31.

Approval of the proposed amendments requires consents from holders of a majority of the outstanding principal amount of each series of notes.

Holders must be of record as of 5 p.m. ET on June 22.

BofA Merrill Lynch (888 292-0070 or 980 683-3215) and J.P. Morgan Securities LLC are the solicitation agents. D.F. King & Co., Inc. (212 269-5550 or 800 330-5897) is the information and tabulation agent.

Darden is an Orlando, Fla.-based casual dining operator.

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