New Issue: CKE Restaurants upsized $90 million convertible yields 4%, up 27%

By Ronda Fears

Nashville, Sept. 23 - CKE Restaurants Inc. sold an upsized $90 million of 20-year convertible notes at par to yield 4% with a 27% initial conversion premium - at the aggressive end of guidance.

Citigroup was bookrunning lead manager of the Rule 144A deal, which had been talked to yield 4.0% to 4.5%, up 23% to 27%.

The Santa Barbara, Calif. quick-service restaurant company plans to use proceeds to repay part of its 4.25% convertible subordinated notes due 2004. The company intends to retire the remainder of that issue by replacing its existing $100 million senior credit facility with a new $150-175 million facility and drawing down those funds.

Terms of the new deal are:

Issuer: CKE Restaurants Inc.

Issue:	Convertible subordinated notes
Lead manager:		Citigroup
Amount	$90 million, up from $75 million
Greenshoe:	$15 million, unchanged
Maturity:	Oct. 1, 2023
Coupon:	4.0%
Price:	Par
Yield:	4.0%
Conversion premium:	27%
Conversion price:	$8.89
Conversion ratio:	112.4859
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15, in cash only
Contingent conversion:	110%
Price talk:	4.0-4.5%, up 23-27%
Pricing date:	Sept. 23, after the close
Settlement:	Sept. 29
Distribution:	Rule 144A
	Note: In the Sept. 22 edition of Prospect News Convertible Daily, the headline on a report about this offering incorrectly described it as a convertible preferred. Rather, it is an offering of 20-year convertible subordinated notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.