RCI Announces $81.2 Million Debt Consolidation though Bank Real Estate Loan at 5.75%

HOUSTON, Dec. 18, 2017 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced a subsidiary has entered into an $81.2 million, 5.75% fixed rate (subject to one adjustment in five years), 10-year real estate consolidation loan with a 20-year amortization schedule with Centennial Bank of Arkansas.

"This new bank loan provides RCI with numerous benefits in line with our corporate goals and strategies," said Eric Langan, President & CEO.

"It simplifies and consolidates our debt structure, locks in our interest rate on this debt at an attractive rate, pays off a significant amount of higher rate non-real estate debt, and stabilizes our debt servicing costs. The new loan also eliminates multiple balloons over the next four years, including the one on our prized Miami Gardens location where Tootsie's Cabaret Miami is located.

"In addition, putting together this loan required extensive independent documentation, including surveys, environmental studies, and appraisals, of all the parcels and facilities involved, providing thorough third party due diligence of our real estate. Although we believe many of the valuations of the appraised properties were on the low side based on our experience in those markets, having this type of third party analysis is beneficial to the company and its shareholders."

New Loan Details

• Refinances the majority of RCI's properties (43 parcels)
• Pays off 20 loans and partially pays off a 21st
• Enables RCI to pull out real estate equity to pay off about $10 million in higher-rate non-real estate debt
• Eliminates all RCI real estate balloon loans and associated refinancing fees over the next 10 years
• Stabilizes debt servicing cash outlays on this debt at $9.84 million in each of the first two years
• Starting in year three, debt servicing cash outlays drop to $6.84 million per year for the balance of the loan

As a result of the new loan, RCI will incur approximately $543,000 in prepayment penalties in the first quarter ended December 31, 2017, most of which will be offset by a $423,000 gain on sale of a non-income producing property.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With 45 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities operate under brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or [email protected] and [email protected]

SOURCE RCI Hospitality Holdings, Inc.