RARE Hospitality's 2.5% senior notes convertible effective Oct. 1

By Devika Patel

Knoxville, Tenn., Oct. 2 - RARE Hospitality International, Inc. announced that beginning on Oct. 1 and for 30 business days thereafter, holders of its 2.5% convertible senior notes due 2026 may elect to convert their holdings.

The conversion opportunity arose because of a "fundamental change" created by a tender offer. Darden Restaurants, Inc.'s subsidiary offered to acquire all outstanding RARE common shares. As a result, the shares have been tendered for $38.15 in cash.

Holders who elect to convert their holdings will receive $1,078.38 plus accrued interest for each $1,000 principal amount of notes. Each converting holder who delivered and did not withdraw consents for the notes will also receive a consent fee.

RARE Hospitality, based in Atlanta, owns, operates and franchises 323 restaurants, including 292 LongHorn Steakhouse restaurants and 29 The Capital Grille restaurants.

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