Ruby Tuesday talks $250 million eight-year notes with 7¾% area yield

By Paul A. Harris

Portland, Ore., May 4 - Ruby Tuesday, Inc. talked its $250 million offering of eight-year senior notes (B3/B-/) with a yield in the 7¾% area on Friday, , according to a syndicate source.

The books close at 2 p.m. ET on Monday, except for accounts meeting with management on Monday, and the deal is set to price thereafter.

Bank of America Merrill Lynch is the bookrunner.

Lazard Capital Markets and Wells Fargo Securities LLC are the co-lead managers.

Fifth Third Securities Inc., US Bancorp, PNC Capital Markets LLC and BB&T Capital Markets are the co-managers.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection and feature a 101% poison put.

The Maryville, Tenn.-based restaurant company plans to use the proceeds to repay all of its revolver debt, as well as to redeem all of its series B senior notes, to pay off certain mortgage loans and for general corporate purposes.

The company owns and operates Ruby Tuesday, Lime Fresh Mexican Grill, Marlin & Ray's, Truffles and Wok Hay casual dining restaurants.

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