April 19 (Bloomberg) -- Landry’s Inc. $1.03 billion term loan to refinance debt rose in its first day of trading, according to data provider Markit Group Ltd.
The debt for the owner of Rainforest Café and Bubba Gump Shrimp Co. was quoted today at 99.75 cents on the dollar, according to Markit. The loan was sold to investors at 98.5 cents, according to data compiled by Bloomberg.
Jefferies Group Inc. arranged the financing for the Houston-based company, the data show.
The loan pays interest at 5.25 percentage points more than the London interbank offered rate, with a 1.25 percent floor, Bloomberg data show. Libor, the rate at which banks say they can borrow in dollars from each other, serves as a reference for about $360 trillion of financial instruments worldwide.
Lenders will receive one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.
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