Del Frisco’s cancels plans for $425 million syndicated term loan

By Sara Rosenberg

New York, Sept. 25 – Del Frisco’s Restaurant Group Inc. is no longer going forward with syndication of its proposed $425 million seven-year first-lien term loan due to a newly announced agreement with Landry’s Inc. for the acquisition of Del Frisco’s Double Eagle Steakhouses and the Del Frisco’s Grilles, according to a market source.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Societe Generale and Citizens Bank were acting as the lead arrangers on the term loan that was talked at Libor plus 700 basis points with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for six months.

The term loan was going to be used to help fund the buyout of Del Frisco’s by L Catterton for $8.00 per share, or about $650 million.

The buyout closed on Wednesday and was funded with a $325 million senior secured term loan that was not syndicated, equity and cash on hand.

Upon closing on the sale of Del Frisco’s Double Eagle Steakhouses and the Del Frisco’s Grilles to Landry’s from L Catterton, the non-syndicated term loan will be repaid, the source said.

The sale to Landry’s is expected to close at the end of October and does not include the ownership of the bartaco and Barcelona Wine Bar brands, which will be retained by L Catterton.

Del Frisco’s is an Irving, Tex.-based restaurant company. Landry’s, wholly owned by Tilman J. Fertitta, is a Houston-based restaurant, hospitality, gaming and entertainment company.

© 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.