Logan’s Roadhouse interim financing approved; final hearing Sept. 1

By Caroline Salls

Pittsburgh, Aug. 9 – Logan’s Roadhouse, Inc. received court approval to access a portion of a proposed $75 million in debtor-in-possession financing on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Sept. 1.

As previously reported, the financing includes $25 million in new money financing and the issuance of new roll-up facility notes in exchange for each lender’s claim for notes issued under pre-bankruptcy indentures.

On an interim basis, the notes will be exchanged on a dollar-for-dollar basis for every dollar of borrowings actually disbursed under the new money facility, and, upon entry of a final order, additional new notes under the roll-up facility so that the total notes under the roll-up facility received by each DIP lender that has a claim for notes will result in an exchange on a 2:1 basis for every dollar of borrowings disbursed under the new money facility.

A total of $10 million of the new money facility will be available on an interim basis.

Cortland Capital Market Services LLC is the administrative agent and collateral agent.

Interest on Base rate loans will accrue at Libor plus 750 basis points with a 2% floor, and interest on Eurodollar loans will accrue at Libor plus 850 bps with a 1% floor.

The facility will mature on the earliest of the plan effective date, the closing date of a sale of all or substantially all of the company’s assets, termination of the commitments or acceleration of the loans and Nov. 14.

Logan’s, a Nashville-based restaurant chain, filed bankruptcy on Aug. 8. The Chapter 11 case number is 16-11819.

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