http://www.chron.com/cs/CDA/ssistory.mpl/front/2942256 Landry's may be loading up Filings indicate next purchase could be expensive By DAVID KAPLAN Copyright 2004 Houston Chronicle What does Tilman Fertitta want for Christmas? The chairman and CEO of Houston-based Landry's Restaurants is known for bold purchases, and he may be about to make another one, possibly something other than a restaurant chain. If recent company filings with government regulators are an indication, the chain's next acquisition could carry a hefty price tag. Earlier this month the company announced that it is arranging a new $400 million line of credit with banks and plans to sell $450 million in debt to institutional investors. The credit line would consist of a $250 million revolving credit facility and a $150 million term loan. The credit line will be arranged by Wachovia Capital Markets, Banc of America Securities and Deutsche Bank Securities. The $450 million in debt will be unsecured and guaranteed by some Landry's subsidiaries. "It sounds like they're loading up to make some sort of acquisition," said Michael D. Smith, an analyst at Opp-enheimer & Co. Officials at Landry's were unavailable for comment. "If you go back to their conference call, they certainly sounded acquisition hungry," said Michael Gallo, an equity research analyst at C.L. King & Associates. "Either they've identified one or more acquisition targets, or they're looking at a low-interest rate environment to lock up long-term capital or some combination of the two." During a recent conference call, "they mentioned a possible interest in the gaming industry" — as in casinos — but it is pure speculation as to whether the company is seriously planning to go that direction, Gallo said. For months there have been rumors that Landry's would like to acquire the Houston Astros. The firm's Inn at the Ballpark and Vic & Anthony's Steakhouse are across the street from the baseball stadium, and Fertitta and Astros owner Drayton McLane are friends. Fertitta strongly hinted at other types of acquisitions at a C.L. King and Associates Best Ideas Conference in New York City last September. "There are lots of opportunities out there, but they are drying up in the restaurant industry," he said. "If they dry up in the restaurant industry, as long as they're in our specialty growth areas or somewhere in the entertainment fields, then we're going to be very opportunistic about ways to grow this company." Two years ago, Landry's purchased the 27-unit Saltgrass Steak House and Seafood restaurants from MetroNational Corp. for $75 million. Also in 2002 the company acquired the 35-unit Chart House and 16-unit Charley's Crab seafood chains. Between 1996 and 2000, Landry's purchased the Crab House chain, Cadillac Bar & Grill and Rainforest Cafes.
I wouldn't be suprised if it is the casino industry. Fertitta's brothers own the Green Valley Ranch Resort and Casino out in Las Vegas, that is featured on the Discover Channel show, American Casino.
I think it would hurt hs chances if the casino had a sportsbook for sure...but regardless, it can't help his cause.
it was my understanding that Tilman J was a minority owner of the Texans which would preclude him form owning the baseball team. Therefore, if anything were to happen, it would be forecasted by the sale of his share of the team.
Haven's watched the newest eps of this show yet. They have to find an excuse to get her in a bikini though. Like a staff pool party or something. That guy who does the lame drink on his head trick can figure it out.
I have read that Fertita wants to bring gambling to Galveston, in the form of an Atlantic City/Vegas style resort/hotel complex. I think that would be amazing.
I hope they eventually bring a Casino pretty close to here. I mean the amount of revenue and jobs it would bring would be amazing to a city like ours. I mean how many people a day or year for that matter go to Lake Charles. We already have the lottery the only step to take is get gambling going and the economy here would boom a bit more. Houston officials know how much money is getting pumped into Louisina right now becuase of Casinos. That question is how long before they tap into it as well.
That would be great, but wouldn't Texas law have to be changed in order to allow gaming in the state? And why Galveston, just convert the Astrodome into a supercomplex, that would be sweet.
Thats what they were talking about when the new stadium was going ot be built but that never came to pass. Galveston would be an eaiser option because they can do the whole boat thing or resort build on the water which probably can get around some kind of rules. Since it is off the land and a certain distance away from the shore is considered international waters.
