RCI Hospitality Holdings Secures $22 Million Promissory Note with Adjusted Debt Coverage Terms
RCI Hospitality Holdings Inc. has secured a $22 million promissory note as part of a $30 million transaction to repurchase shares from ADW Capital Partners. The note bears 12% interest and requires monthly payments. Centennial Bank agreed to reduce the debt service coverage ratio temporarily until June 30, 2026. The note includes prepayment provisions for asset sales or change of control.
RCI Hospitality Holdings Inc. has entered into a new financing arrangement in connection with its repurchase of 821,000 shares of common stock from ADW Capital Partners, L.P. The $30 million transaction was funded through an $8 million cash payment and a $22 million two-year unsecured promissory note bearing interest at 12% per annum. Centennial Bank, a lender to RCI, consented to this additional indebtedness and agreed to temporarily reduce the debt service coverage ratio requirement under RCI’s existing loan agreements from 1.40x to 1.25x through June 30, 2026. After that date, the requirement will revert to 1.40x. The promissory note requires equal monthly payments and includes provisions for prepayment in the event of asset sales or a change of control. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. RCI Hospitality Holdings Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-25-053979), on November 25, 2025, and is solely responsible for the information contained therein. © Copyright 2025 - Public Technologies (PUBT) Original Document: here
