Romacorp pays note coupon after amending credit facility

New York, July 22 - Romacorp said it made the semi-annual interest payment on its 12% senior notes due 2006 on July 18, delayed from the scheduled date of July 1.

The Dallas-based casual dining company said in a filing with the Securities and Exchange Commission that the delay was due to the time required to finalize an amendment to its credit facility.

Romacorp added that it needed to amend the terms of its credit facility because the company's performance in the quarter ending June 2002 was "significantly below management's expectations."

The amendment reduces the maximum principal amount to $18.0 million until Sept. 30, 2002, according to the SEC filing. On Sept. 30, 2002, the amount is reduced a further $250,000 and declines a further $250,000 on the last day of each calendar month after that until June 2003 when it is reduced to $5.5 million.

The interest rate was increased to prime plus 150 basis points until January 2003 after which it increases 25 basis points a month until it is refinanced, Romacorp said in the SEC filing.

The amendment also reduced the required consolidated EBITDA to $11.5 million for the quarter ending March 2002, $10.0 million for the quarters ending June 2002, September 2002 and December 2002, and $12.0 million for the quarter ending March 2003 and after that.

The required interest coverage ratio was reduced to 1.4 for the quarter ending March 2002; 1.2 for the quarter ending June 2002; 1.15 for the quarters ending September 2002 and December 2002; and 1.4 for the quarter ending March 2003 and thereafter.

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