Furr's Restaurant Group, Inc. Announces a New $55 Million Bank Credit Facility And the Redemption of Its 12% Senior Secured Notes Due December 31, 2001

Apr 11, 2001, 01:00 ET from Furr's Restaurant Group, Inc.

    RICHARDSON, Texas, April 11 /PRNewswire/ -- Furr's Restaurant Group, Inc.
 (Amex:   FRG) announced today that it had entered into a new $55 million
 Revolving Credit and Term Loan Agreement led by Fleet National Bank and is
 redeeming its 12% Senior Secured Notes due December 31, 2001.
     Concurrent with the execution of this new agreement, the company defeased
 and gave notice of redemption of its 12% Senior Secured Notes due December 31,
 2001 and repaid in full the $2.6 million of 10.5% Notes due December 31, 2001.
 Accordingly, the balance of these notes, less the current portion of the new
 term loan, have been classified as long term at January 2, 2001 in the
 Company's financial statements.
     After the redemption of the 12% Notes and the repayment of the 10.5%
 Notes, the Company had $44 million outstanding under the new credit agreement
 which provides that the Company can borrow up to $20 million on a revolving
 basis until April, 2006, of which $9 million was drawn at closing, with the
 remaining $11 million of available borrowings to be used for working capital
 and capital expenditures.  The credit agreement also provides for a
 $30 million Term Loan A and a $5 million Term Loan B.  The Term Loan A
 provides for quarterly amortization through April, 2006, and the Term Loan B
 provides for no amortization until April, 2007, when the full amount is due.
 The Company's obligations under the credit agreement are secured by a security
 interest in and liens upon substantially all of the Company's assets.
     The credit agreement contains covenants with regard to maintaining certain
 leverage ratios, achieving certain levels of EBITDA, operating cash flow and
 limits on capital expenditures.  In addition, there are certain restrictions
 on the payment of dividends and additional indebtedness.  The agreement allows
 the Company to borrow at either Federal Funds Rate plus an applicable margin,
 or at a Eurocurrency Reserve Rate plus an applicable margin.
     Phil Ratner, President and CEO of Furr's said, "We are very excited about
 entering into this new bank credit facility led by Fleet National Bank.  This
 new credit facility allows us to repay the bonds that were due at the end of
 2001, establish a lower borrowing cost and also gives us the working capital
 that is needed for growth.  This propels the Company into the next chapter of
 its redevelopment."
     Holders of Cafeteria Operators, L.P. 12% Senior Secured Notes Due
 December 31, 2001 issued by Cafeteria Operators, L.P., should contact either
 the Company or State Street Bank, Corporate Trust, Boston, MA for proper
 instructions on the redemption of the notes.
     Furr's Restaurant Group, Inc. operates 95 cafeterias under the Furr's and
 Bishop's names in midwestern, southwestern and western states.  The Company
 also operates Dynamic Foods, its food preparation, processing and distribution
 division, in Lubbock, Texas.
     Note:  Forward-looking statements regarding management's present plans
 involve a number of risks and uncertainties.  The actual results of the future
 events described in such forward-looking statements could differ materially
 from those stated in such forward-looking statements.  Among the factors that
 could cause actual results to differ materially are:  adverse conditions in
 the restaurant industry and other competitive factors, governmental
 regulation, pending and possible future litigation, seasonality of business,
 loss of material suppliers or increases in the costs of raw materials used in
 the Company's food products, termination of key franchise and/or license
 agreements, as well as other risks and uncertainties disclosed in periodic
 reports on Form 10-K and Form 10-Q filed with the Securities and Exchange
 Commission.
 
 

SOURCE Furr's Restaurant Group, Inc.
    RICHARDSON, Texas, April 11 /PRNewswire/ -- Furr's Restaurant Group, Inc.
 (Amex:   FRG) announced today that it had entered into a new $55 million
 Revolving Credit and Term Loan Agreement led by Fleet National Bank and is
 redeeming its 12% Senior Secured Notes due December 31, 2001.
     Concurrent with the execution of this new agreement, the company defeased
 and gave notice of redemption of its 12% Senior Secured Notes due December 31,
 2001 and repaid in full the $2.6 million of 10.5% Notes due December 31, 2001.
 Accordingly, the balance of these notes, less the current portion of the new
 term loan, have been classified as long term at January 2, 2001 in the
 Company's financial statements.
     After the redemption of the 12% Notes and the repayment of the 10.5%
 Notes, the Company had $44 million outstanding under the new credit agreement
 which provides that the Company can borrow up to $20 million on a revolving
 basis until April, 2006, of which $9 million was drawn at closing, with the
 remaining $11 million of available borrowings to be used for working capital
 and capital expenditures.  The credit agreement also provides for a
 $30 million Term Loan A and a $5 million Term Loan B.  The Term Loan A
 provides for quarterly amortization through April, 2006, and the Term Loan B
 provides for no amortization until April, 2007, when the full amount is due.
 The Company's obligations under the credit agreement are secured by a security
 interest in and liens upon substantially all of the Company's assets.
     The credit agreement contains covenants with regard to maintaining certain
 leverage ratios, achieving certain levels of EBITDA, operating cash flow and
 limits on capital expenditures.  In addition, there are certain restrictions
 on the payment of dividends and additional indebtedness.  The agreement allows
 the Company to borrow at either Federal Funds Rate plus an applicable margin,
 or at a Eurocurrency Reserve Rate plus an applicable margin.
     Phil Ratner, President and CEO of Furr's said, "We are very excited about
 entering into this new bank credit facility led by Fleet National Bank.  This
 new credit facility allows us to repay the bonds that were due at the end of
 2001, establish a lower borrowing cost and also gives us the working capital
 that is needed for growth.  This propels the Company into the next chapter of
 its redevelopment."
     Holders of Cafeteria Operators, L.P. 12% Senior Secured Notes Due
 December 31, 2001 issued by Cafeteria Operators, L.P., should contact either
 the Company or State Street Bank, Corporate Trust, Boston, MA for proper
 instructions on the redemption of the notes.
     Furr's Restaurant Group, Inc. operates 95 cafeterias under the Furr's and
 Bishop's names in midwestern, southwestern and western states.  The Company
 also operates Dynamic Foods, its food preparation, processing and distribution
 division, in Lubbock, Texas.
     Note:  Forward-looking statements regarding management's present plans
 involve a number of risks and uncertainties.  The actual results of the future
 events described in such forward-looking statements could differ materially
 from those stated in such forward-looking statements.  Among the factors that
 could cause actual results to differ materially are:  adverse conditions in
 the restaurant industry and other competitive factors, governmental
 regulation, pending and possible future litigation, seasonality of business,
 loss of material suppliers or increases in the costs of raw materials used in
 the Company's food products, termination of key franchise and/or license
 agreements, as well as other risks and uncertainties disclosed in periodic
 reports on Form 10-K and Form 10-Q filed with the Securities and Exchange
 Commission.
 
 SOURCE  Furr's Restaurant Group, Inc.