Red Lobster refinances loan, launches promotions to drive sales
As Red Lobster refinances its USD 380 million (EUR 316 million) loan, it is gearing up with new promotions to drive traffic and sales at its restaurants.
The Orlando, Florida, U.S.A.-based chain, owned by the Seafood Alliance consortium that includes Red Lobster’s major investor, Thai Union Group, executed an exclusivity agreement to refinance the loan that is due this summer, sources told Debtwire, FSR Magazine reported.
“Red Lobster has completed its debt refinancing, entering into a new term loan agreement with Fortress Credit Corp. and a working capital facility with Wells Fargo Capital Finance. Financial terms of the loan agreement are not being disclosed,” a spokesperson told Debtwire.
The lenders received a USD 65 million (EUR 54 million) pro rata paydown at par on the loan.
Red Lobster also brought back its Lobsterfest promotion this month, with two new dishes: Ultimate Surf and Turf, which includes a six-ounce filet mignon, Maine lobster tail, and bacon-wrapped sea scallops, and Kung Pao Noodles with Fried Lobster. The kung pao dish features hand-battered fried lobster tail with noodles in sweet and spicy soy-ginger sauce with edamame, cabbage, crispy onions, cashews, and green onions.
Red Lobster is also featuring existing dishes Lobster Lover’s Dream, Bar Harbor Lobster Bake; Lobster, Shrimp, and Salmon; and Lobster Linguini during the Lobsterfest promotion.
In addition, the restaurant chain added a Baja Shrimp Bowl to its regular menu. The dish includes seasoned shrimp, avocado, black beans, quinoa rice, pickled red onion, crispy slaw, pico de gallo, sour cream and tortilla strips with jalapeño ranch. It also recently added Bacon-Wrapped Sea Scallops.
For every Lobster Lover's Dream purchased during Lobsterfest, Red Lobster will contribute a portion of its proceeds towards lobster sustainability efforts.
“These efforts include scientific research around the impact of a warming ocean on the Maine lobster population, as well as rock lobster fishery improvement projects in Nicaragua, Honduras, Belize, and Brazil,” Red Lobster said.
Another promotion, focused on Valentine’s Day, allows My Red Lobster Rewards loyalty program members to receive an exclusive link to claim 15 percent off their qualifying purchase for select flower arrangements from 1-800-Flowers.com. When members make a qualifying flower purchase, they earn a free Maine Lobster Tail in their My Reward wallet.
Photo courtesy of Red Lobster