Printer Friendly

IHOP COMPLETES $32 MILLION PRIVATE PLACEMENT; ARRANGES $10 MILLION BANK REVOLVING LINE OF CREDIT

 GLENDALE, Calif., Nov. 19 ~PRNewswire~ -- IHOP Corp. (NASDAQ: IHOP) today announced that it has completed a private placement of $32 million of 7.79 percent unsecured senior notes due in 2002 and has arranged a new $10 million unsecured revolving line of credit.
 Richard K. Herzer, chief executive officer, said, "The private placement of the senior notes provides IHOP with long-term debt capital on very attractive terms. In combination with our July 1991 initial public offering, IHOP now has the capital structure which gives it the financial flexibility to continue to grow in an orderly fashion."
 The senior notes do not require any principal payments during the first four years and then fully amortize over their remaining life. Proceeds were used in part to retire a total of approximately $28 million in debt consisting of: $10 million of 12.25 percent subordinated notes due May 1997, $12.2 million of mortgage and equipment notes due through the year 2001, and approximately $5.9 million under IHOP's prior bank revolving line of credit. The balance will be used primarily to fund the conversion costs associated with the company's recent acquisition of 23 JB's restaurants in the Pacific Northwest.
 The annual pre-tax savings resulting from the refinancing of the fixed-rate portion of the debt which was repaid is estimated at nearly $600,000.
 Because of the early extinguishment of debt, the company anticipates incurring an extraordinary charge to earnings, net of income taxes, of approximately $800,000, or about $.09 per share, during the fourth fiscal quarter of 1992.
 The new $10 million unsecured revolving line of credit is with Continental Bank N.A. and is effective through Jan. 31, 1994. IHOP simultaneously canceled its previous $15 million secured revolving credit line with its former lender bank. Continental Bank N.A. also served as the private placement agent for the senior notes.
 IHOP Corp., which posted $105.3 million in revenues in 1991, develops, franchises and operates International House of Pancakes restaurants, one of America's best-known national family restaurant chains. As of Sept. 30, 1992, the company had 534 restaurants, including 22 newly acquired JB's. Of the 512 IHOP restaurants, 354 were operated by franchisees, 50 were operated by the company, and 108 were operated by area licensees. IHOP restaurants are located in 35 states, Canada and Japan, with the greatest concentration of restaurants in California, New York~New Jersey, Florida and Texas.
 -0- 11~19~92
 ~CONTACT: Larry Alan Kay, executive VP, or Frederick G. Silny, VP-finance, of IHOP, 818-240-6055~
 (IHOP)


CO: IHOP Corp. ST: California IN: LEI SU:

LS-JL -- LA022 -- 3037 11~19~92 15:23 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 19, 1992
Words:437
Previous Article:BOCA RATON CAPITAL'S RAILAMERICA SUBSIDIARY COMPLETES INITIAL PUBLIC OFFERING
Next Article:WESTIN BONAVENTURE SHOPPING GALLERY'S LAVA HOLIDAY ART SHOW TO OPEN DEC. 4
Topics:


Related Articles
WISCONSIN CENTRAL COMPLETES $55 MILLION FINANCING PACKAGING
IHOP CORP. ANNOUNCES $15 MILLION LOAN AGREEMENT WITH BANK OF AMERICA
IHOP FINALIZES EXTENSION OF $10 MILLION BANK REVOLVING LINE OF CREDIT
PANCHO'S MEXICAN BUFFET ANNOUNCES $10 MILLION BANK FINANCING; OPENS 70th RESTAURANT
Dixon Ticonderoga Completes Debt Restructuring Program With Issuance Of $16.5 Million Of Senior Subordinated Notes
United Asset Management Corporation Completes Private Placement of $250 Million
Universal Forest Products Completes Long-Term Financing.
Comstock Resources, Inc. Announces Offering of $150 Million in Senior Notes and $30 Million Private Placement of Preferred Stock.
The Sirena Apparel Group Secures $32 Million in New Financing.
Comstock Resources, Inc. Closes Offering of $150 Million in Senior Notes and $30 Million Private Placement of Preferred Stock.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters