Hooters talks $165 million six-year notes with 11¼%-11½% yield

By Paul A. Harris

Portland, Ore., March 9 - Hooters Restaurants talked its $165 million offering of six-year senior secured notes (expected B3/confirmed B) with an 11¼% to 11½% yield on Wednesday, according to an informed source.

The deal is set to price on Thursday morning.

Jefferies & Co. is the bookrunner for the Rule 144A and Regulation S for life offering.

The notes will be issued via HOA Restaurant Group, LLC, a subsidiary of the ultimate parent, HOA Holdings LLC, and via HOA Finance Corp., a financing unit of HOA Restaurant Group.

The notes come with three years of call protection.

The Atlanta-based owner, operator and franchisor of casual dining restaurants will use the proceeds to repay its existing term loan and to redeem sponsor mezzanine debt.

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