HOUSTON—Rick’s Cabaret International Inc., a 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, Fla.
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.
