New Issue: Checkers prices $25 million 11 5/8%/12 3/8% PIK toggle notes at 99 to yield 12.023%

By Paul A. Harris

Portland, Ore., Oct. 11 - Checkers & Rally's Restaurants, Inc. priced a $25 million issue of unrated senior PIK toggle notes at 99 to yield 12.023% on Friday, according to an informed source.

The notes pay a cash coupon of 11 5/8%, which steps up by 75 basis points to 12 3/8% in the event of a PIK coupon payment.

Jefferies LLC ran the books.

The Tampa, Fla.-based fast food restaurant chain operator plans to use the proceeds to fund a dividend.

Issuer:	Checkers & Rally's Restaurants, Inc.
Face amount:	$25 million
Proceeds:	$24.75 million
Maturity:	Nov. 1, 2016
Securities:	Senior PIK toggle notes
Bookrunner:	Jefferies LLC
Cash coupon:	11 5/8%
PIK coupon:	12 3/8%
Price:	99
Yield:	12.023%
Call protection:	Make-whole call at Treasuries plus 50 bps until May 1, 2015, then callable at 103, par on and after Nov. 1, 2015
Mandatory redemption:	If the issuer or any direct or indirect parent completes certain equity offerings, the notes become due and payable on the mandatory redemption date at 103 plus accrued interest
Change-of-control put:	101%
Trade date:	Oct. 11
Settlement date:	Oct. 18
Ratings:	Non-rated
Distribution:	Rule 144A and Regulation S

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