Uno calls off recapitalization talks, makes bond interest payment

By Caroline Salls

Pittsburgh, Sept. 15 - Uno Restaurant Holdings Corp. has decided to end discussions with its bondholders regarding a proposed recapitalization of its balance sheet, and the company made the interest payment on its $142 million of senior secured bonds ahead of the Sept. 15 due date, according to a company news release.

Uno also said it expects future interest payments to be made in a timely fashion.

As previously reported, the company initially deferred the interest payment under a contractual 30-day grace period while it discussed a potential balance sheet recapitalization with bondholders.

However, Uno said it decided to end the negotiations and make the interest payment because it could not reach an agreement that was acceptable to the company.

"Given the company's current level of profitability and liquidity position, we did not feel compelled to agree to terms that were not in the best interests of the company," chief financial officer Louie Psallidas said in the release.

According to the release, Uno remains in compliance with all provisions of its bond indenture, as well as its bank debt agreements, and still has enough liquidity after the interest payment to fund several of the strategic initiatives already underway.

The company said its initiatives include domestic and international franchise development; the continued rollout of the Uno Express concept; investments in the consumer products division; investing in facilities similar to the newly opened or refurbished restaurants located in Swampscott and Burlington, Mass., and Winter Garden, Fla.; and the rollout of Uno's Uno Due Go concept, which is scheduled to debut in two locations in the Dallas Fort Worth airport later this fall.

Uno is a Boston-based owner, operator and franchiser of Uno Chicago Grill.

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