Rick's Cabaret International, Inc. Reaches Agreement To Restructure Terms Of Debt On Its Miami, Florida Gentlemen's Club
HOUSTON - (October 1, 2010) – Rick's Cabaret International, Inc. [NASDAQ- GM:RICK],
the nation's leading operator of upscale gentlemen's clubs,
said today it has renegotiated terms of a $10 million debt facility related to its purchase of Tootsie's Cabaret in Miami Gardens, FL.
Under the modified terms the promissory note becomes a 10 year amortized facility that provides for equal monthly payments and will be fully paid on September 30, 2020, rather than a balloon payment for the entire amount that would have been due on Nov. 30, 2012. Interest on the modified note remains at 14 percent.
"Tootsie's Cabaret remains a jewel in our collection of clubs and we are very pleased that the related debt is now a 10-year amortizing note, allowing us to use our cash reserves for acquisition of new clubs to enhance our overall portfolio," said Eric Langan, President and CEO of Rick's Cabaret.
Tootsie's Cabaret is believed to be the nation's largest gentlemen's club, at 74,000 square feet. It includes Knocker's, which has quickly become Miami's leading sports bar.
About Rick's Cabaret:
Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret". Sexual contact is not permitted at these locations. Rick's Cabaret also operates a media division, ED Publications, and owns the adult internet membership website www.couplestouch.com as well as a network of online adult auction sites under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact ir@ricks.com.
Forward Looking Statements
This document contains forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this document, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. For further information visit www.ricks.com.
Contact: Allan Priaulx, 212-338-0050, allan@ricks.com