RCI Announces Closing of $ 99.1 Million Consolidation and Refinancing Bank Real Estate Loan
HOUSTON-September 30, 2021 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced the closing of a $ 99.1 million commercial bank real estate loan, fixed rate 5.25%, over 10 years (under five-year adjustment reserve), with a 20-year amortization plan.
The new loan refinances $ 85.7 million of existing mortgage debt financed by the bank and the seller; provides $ 12.3 million in cash that will be used to repay existing high interest unsecured debt, enabling these creditors to provide financing for the ongoing acquisition of 11 clubs and associated real estate that RCI announced on July 26, 2021; and funds $ 1.1 million in closing costs.
The new home loan will result in a reduction in interest expense and principal payments of $ 1.4 million and $ 3.8 million in the first year, respectively, and the elimination of $ 7.1 million in future lump-sum payments over the next 24 months.
Eric Langan, President and CEO of RCI Hospitality Holdings, Inc., said, “We are delighted to execute this consolidation and refinancing loan at favorable commercial banking rates and terms.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With over 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the nation’s leading company in gentlemen’s clubs and sports bars / restaurants. Clubs in New York, Chicago, Dallas / Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh and other markets operate under brands such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret and Scarlett’s Cabaret. Sports bars / restaurants operate under the Bombshells Restaurant & Bar brand. Please visit http://www.rcihospitality.com/
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the actual results of the company to differ materially from those shown in this press release, including, but not limited to y limit the risks and uncertainties associated with (i) the operation and management of an adult business, (ii) the business climate in the cities where it operates, (iii) the success or lack of success in the launch and development of the company’s activities, (iv) cybersecurity, (v) conditions relating to real estate transactions, (vi) the impact of the COVID-19 pandemic and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and reliance on key personnel. For a more detailed discussion of these factors and certain risks and uncertainties, see RCI’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as well as its other filings with the Securities and Exchange Commission of United States. The company has no obligation to update or revise forward-looking statements to reflect the occurrence of future events or circumstances.
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RCI Hotel Management Inc. published this content on 04 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 04 October 2021 22:03:05 UTC.