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Romacorp starts exchange to restructure 12% notes
New York, Sept. 22 - Romacorp, Inc. announced it is offering cash or new notes in an exchange offer to restructure its $55 million 12% senior notes due July 1, 2006.
Romacorp is offering either:
* $650 cash per $1,000 principal amount of 12% senior notes; or
* $1,000 principal amount of new 10½% senior notes due Dec. 31, 2008 per $1,000 principal amount of 12% notes, plus payment of accrued interest including interest on unpaid interest; or
* $461.50 of new 6.5% senior notes due Dec. 31, 2008 per $1,000 principal amount of 12% notes, plus payment of 46.15% of accrued interest including interest on unpaid interest, plus $538.50 of new 13.2% senior notes due Dec. 31, 2008 per 1,000 principal amount of 12% notes, plus payment of 53.85% of accrued interest including interest on unpaid interest.
Romacorp is also soliciting consents for a mutual release and for certain amendments to the indenture of the 12% notes.
The exchange is subject to holders tendering at least 90% of the principal amount of the existing 12% notes.
The Dallas restaurant operator added that it has reached agreement with 99% of the holders of the 12% senior notes regarding the restructuring.
The exchange expires at 5.00 p.m. ET on Oct. 27 unless extended.
The Bank of New York is the exchange agent.
"These are very important steps to strengthen our finances and our future," said Romacorp's chief executive officer and president David Head. "Restructuring our long term-debt and certain lease obligations will improve cash flow and allow us to invest in enhancing the Tony Roma's concept and guest experience. We have much work to do, but are excited about the road ahead."
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