Landry’s to offer $87M in notes

Private placement proceeds to help fund Bubba Gump acquisition

Landry’s Restaurants Inc. said Tuesday it will offer up to $87 million in senior secured notes in a private placement to pay for part of its Bubba Gump Shrimp Co. acquisition.

The $87 million, offered at 11.625 percent, would be an add-on at the same terms as the restaurant and gaming company’s previously issued notes, which carry an aggregate principal of $453.5 million, and are due in 2015.

Landry’s said last month it was acquiring the 32-unit Bubba Gump Shrimp Co. casual-dining chain, based in San Clemente, Calif. The deal has yet to close. A week earlier, it acquired the Claim Jumper chain through a bankruptcy court auction.

Also this year, Landry’s founder and chief executive, Tilman Fertitta, closed on a $1.4 billion deal to take the Houston-based company private.

Landry’s owns such restaurant brands as Rainforest Cafe, Saltgrass Steak House, Landry’s Seafood House, Charley’s Crab and The Chart House. In addition, it owns Vic & Anthony’s, Brenner’s Steakhouse, Grotto, LaGriglia, Pesce, Willie G’s and Oceanaire.

Its other hospitality businesses include the Golden Nugget Hotel & Casinos in Las Vegas and Laughlin, Nevada, the Kemah Boardwalk, the San Luis Resort, Inn at the Ball Park and the Downtown Aquarium in Denver and Houston.

Contact Ron Ruggless at [email protected]