AMERICAN RESTAURANT GROUP ANNOUNCES THE COMPLETION OF ITS SENIOR DEBT REFINANCING
AMERICAN RESTAURANT GROUP ANNOUNCES THE COMPLETION
OF ITS SENIOR DEBT REFINANCING
NEWPORT BEACH, Calif., March 20 /PRNewswire/ -- American Restaurant Group, Inc. today announced the successful completion of the refinancing of its senior debt with the issuance of $120 million of senior secured notes through BT Securities Corporation and Merrill Lynch & Co., as well as $66 million of a term loan and a working capital facility through Bankers Trust Company.
This refinancing began in July 1991 when the company placed $45 million of subordinated debt with Merrill Lynch Interfunding Inc. The refinancing proceeds were used to prepay the balance of the company's senior debt incurred at acquisition in February 1987, to purchase certain warrants and to provide for future expansion and working capital requirements.
Anwar Soliman, chairman and chief executive officer of the company, noting the company's successful track record, having doubled its cash flow in the last five years, and its future potential, stated that these refinancing transactions reflect the confidence of the company's new lenders. As a result of these transactions the company has a more traditional capital structure with extended maturities and the company's management has increased its fully diluted common stock ownership to approximately 70 percent. Soliman stated that he was extremely satisfied with these transactions particularly since they were concluded in an uncertain economic environment. He attributed this success to the strength of the company's management, the excellent reputation of its restaurants for quality and value, and its positioning in the growing midscale casual dining segment of the restaurant industry.
American Restaurant Group, one of the largest restaurant companies in the United States, operates 240 restaurants under the names Stuart Anderson's Black Angus/Cattle Company, Grandy's, Spoons, Velvet Turtle and several speciality restaurants such as Prego, Tutto Mare and MacArthur Park in its Spectrum Division. The company also franchises 100 Grandy's restaurants both domestically and internationally.
/CONTACT: Anwar Soliman of American Restaurant Group, 714-721-8000/ CO: American Restaurant Group, Inc. ST: California IN: LEI SU: FNC KD-SM -- NY063 -- 0199 03/20/92 15:49 EST