Krystal announces dutch auction tender for $30 million notes

New York, Nov. 16 - The Krystal Co. announced a modified dutch auction tender offer for up to $30 million principal amount of its 10¼% senior notes due 2007.

The Chattanooga, Tenn. quick-service restaurant company said it is inviting holders to submit offers to sell at prices between $600 and $650 per $1,000 principal amount of the notes. Krystal will pay all holders who tender the same highest price necessary to buy $30 million principal amount of notes.

The offer expires at 5.00 p.m. ET on Dec. 17 unless extended.

Krystal said it will finance the offer through a sale and leaseback transaction involving 38 of its restaurant properties.

The tender is subject to the availability of enough funds to buy the notes and obtaining a new credit facility.

Banc of America Securities LLC is the dealer manager, SunTrust Bank the depositary, and D.F. King & Co., Inc. the information agent for the tender offer.

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