New Issue: Landry's prices $87 million add-on to 11 5/8% notes due 2015 at 104.25

By Paul A. Harris

St. Louis, Dec. 14 - Landry's Restaurants, Inc. priced an $87 million add-on to its 11 5/8% senior secured notes due Dec. 1, 2015 (B3/B/) at 104.25 on Tuesday, resulting in a 10.498% yield, according to an informed source.

The reoffer price came in the middle of the 104 to 104.5 price talk.

Jefferies & Co., Inc. was the bookrunner for the quick-to-market deal.

Proceeds, along with a draw on the incremental term loan borrowings under the company's amended senior secured credit facility, will be used to fund the acquisition of Bubba Gump Shrimp Co. Restaurants, Inc., for expenses and for general corporate purposes.

Landry's is a Houston-based restaurant company.

Issuer:	Landry's Restaurants, Inc.
Face amount:	$87 million
Proceeds:	$90.7 million (approximate)
Maturity:	Dec. 1, 2015
Security description:	Add-on to the 11 5/8% senior secured notes
Bookrunner:	Jefferies & Co., Inc.
Co-manager:	Deutsche Bank Securities Inc.
Coupon:	11 5/8%
Price:	104.25
Yield:	10.498%
Call features:	Callable on Dec. 1, 2012 at 105.813, 102.906, par on and after Dec. 1, 2014
Equity clawback:	35% at 111.625 until Dec. 1, 2012
Change-of-control put:	101%
Trade date:	Dec. 14
Settlement date:	Dec. 20
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A
Price talk:	104 to 104.5
Marketing:	Quick to market
Original issue:	$406.5 million priced at 98.427 to yield 12% on Nov. 18, 2009
Previous add-on:	$47 million priced at 106 to yield 10.186% on April 23, 2010
Total issue size:	$540.5 million

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