Shoney's Inc. (SHOY.OB) said Friday morning that it has secured the biggest portion of a new financing arrangement needed to complete a very critical restructuring program.
However, while Shoney's now has syndicated the $135 million of debt to be attached to the company's Captain D's unit, "there still are some other aspects of the financing that are not completed and it will take until next Tuesday to do so," Jim Beltrame, Shoney's chief financial officer, told NashvillePost.
He would not say what portion of the financing package remains incomplete. Shoney's said Monday that, in addition to a commitment letter to finance $135 million, it also had a commitment letter from Bank of America to fund a $30 million revolving credit line for the company's commissary operations.
The financing found for the Captain D's portion won't be funded until Tuesday, he said.
A tender offer for two series of Shoney's' bonds has been extended a day, until 11:00 a.m. Tuesday. The company said it expects the transaction to close then, but "there can be no assurance to that effect."
Shoney's is attempting to repurchase $229 million face amount of bonds at a steep discount. It also intends to reorganize the company into separate units, each with its own pro-rate share of debt.
Shoney's shares were unchanged at $1 in Friday morning trading.
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