By Laura Lutz
Des Moines, Dec. 5 - IHOP Corp. announced details of its $35 million private placement of convertible preferred stock in an 8-K filing with the Securities and Exchange Commission.
The company said it sold 35,000 shares of its series B convertible preferred stock to affiliates of Chilton Investment Co., LLC. Each preferred share was priced at $1,000.
The value of the preferred will increase at a rate of 6% per year, compounded quarterly.
Each $1,000 accreted value of preferred shares is convertible into 14.44878 common shares. That ratio is equivalent to a conversion price of about $69.21.
All of the preferreds will be automatically converted five years after issuance.
The placement was conducted under a July 15 purchase agreement between IHOP and Chilton, according to the filing.
Proceeds of the deals were used to financing IHOP's acquisition of Applebee's International, Inc., which closed on Thursday.
IHOP is a restaurant chain based in Glendale, Calif.
| Issuer: | IHOP Corp.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $35 million
|
| Preferred shares: | 35,000
|
| Term: | Five years
|
| Dividend: | 6%
|
| Price: | $1,000
|
| Conversion price: | $69.21
|
| Conversion ratio: | Each $1,000 of preferreds into 14.44878 common shares
|
| Warrants: | No
|
| Investor: | Affiliates of Chilton Investment Co., LLC
|
| Settlement date: | Nov. 29
|
| Stock symbol: | NYSE: IHP
|
| Stock price: | $52.29 at close Nov. 29
|
© 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.
