RARE to price $110 million 20-year convertibles Thursday, talked at 2.5%-3%, up 30%-32%

By Kenneth Lim

Boston, Nov. 15 - RARE Hospitality International Inc. plans to price Thursday after the market closes $110 million of 20-year convertible senior notes, talked at a coupon of 2.5% to 3% and an initial conversion premium of 30% to 32%.

There is an over-allotment option for a further $15 million.

Wachovia Securities is the bookrunner of the Rule 144A offering.

The notes will be non-callable for the first seven years and may be put in years seven, 10 and 15.

There will be dividend and takeover protection.

RARE, an Atlanta-based restaurant operator, said it will use the proceeds to buy back its common stock, up to $70 million of which will be repurchased concurrently.

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