RCI Announces Closing of $ 99.1 Million Bank Consolidation and Refinancing Mortgage Loan | Texas News
HOUSTON, September 30, 2021 / PRNewswire / – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced the closing of a $ 99.1 million, Commercial bank real estate loan at a fixed rate of 5.25% over 10 years (subject to an adjustment every five years), with an amortization schedule of 20 years.
The new loan refinances $ 85.7 million existing real estate 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, allowing these creditors to finance the ongoing acquisition of 11 clubs and associated real estate announced by RCI July 26, 2021; and funds $ 1.1 million in closing costs.
The new mortgage will result in a reduction in interest charges and principal repayments of $ 1.4 million and $ 3.8 million during 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 City, Chicago, Dallas / Ft. Value, Houston, Miami, Minneapolis, Saint 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 year ended. September 30, 2020, as well as its other documents filed with the United States Securities and Exchange Commission. 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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SOURCE RCI Hospitality Holdings, Inc.