Uno Takes Bond Payment Off The Menu
August 13, 2008
Uno Chicago Grill is famous for its deep dish pizza, but its pockets are apparently not deep enough to make a bond payment this Friday. Boston-based parent company Uno Restaurant Holdings will miss a payment and is negotiating with bondholders through advisor Houlihan Lokey Howard & Zukin, according to a report in The Wall Street Journal.
Uno is scheduled to make a $7.5 million interest payment on its $14 million senior secured notes, but it is hoping to get a waiver or amendment from bondholders. The report quotes Uno CFO Louie Psallidas as saying that the company is not in imminent threat of bankruptcy and that he is confident that a solution will be found before it defaults.
Yesterday both Moody’s Investors Service and Standard & Poor’s downgraded the company’s ratings. Moody’s downgraded Uno’s corporate family rating, senior secured notes rating and probability of default rating to Ca from Caa2. S&P lowered its ratings on the company to CC from CCC. Both agencies continue to have a negative outlook on the company.
The restaurant industry has been hard hit by the current economic climate, as concerned consumers have reduced their trips to restaurants and are more frequently dining at home. Last month, S&A Restaurant Corp., the parent company of restaurant chains Bennigan’s and Steak &Ale, filed for bankruptcy.
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