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Seafood Co. Nets Lenders

25 Oct 2003

Landry's Restaurants, an operator of casual dining seafood restaurants, found that hitting the $1 billion mark in revenues has led to a stronger appeal with lenders.

Landry's Restaurants, an operator of casual dining seafood restaurants, found that hitting the $1 billion mark in revenues has led to a stronger appeal with lenders. "The market seems really good," noted Paul West, executive v.p. and cfo of Landry's. More banks made a commitment to the $200 million, four-year credit line led by Bank of America and Fleet Bank, than the last bank line, he said. Landry's increased revenues since the last syndication had a big impact, West stated. Second quarter revenues were $300 million, compared to $231.9 million just a year earlier.

West commented on the timing of the refinancing by explaining that the previous $220 million credit line had $86 million outstanding and was set to mature next June. He added that approximately $35 million of notes were also outstanding. In addition to the new bank line, Landry's completed a $150 million senior private placement notes issue with Prudential Capital Group earlier this month. The average term of the notes is approximately eight years, with a weighted average interest rate of 5.95%. The private placement provides a greater diversification of capital structure and longer-term financing, according to a statement from the company.

B of A and Fleet led the previous line and West declined to name the new lenders. But the current syndicate includes SunTrust Bank and Scotia Bank as co-syndication and documentation agents, respectively. Merrill Lynch, UBS, Branch Banking and Trust Company,Guaranty Bank, U.S. Bank, SouthTrust Bank, Bank One, SouthWest Bank of Texas and Costal Banc also participated.

25 Oct 2003