New Issue: Ruby Tuesday prices $250 million 7 5/8% eight-year notes at 98.536 to yield 7 7/8%

By Paul A. Harris

Portland, Ore., May 7 - Ruby Tuesday, Inc. priced a $250 million issue of 7 5/8% eight-year senior notes (B3/B-/) at 98.536 to yield 7 7/8% on Monday, according to a syndicate source.

The yield printed at the wide end of yield talk that was set in the 7¾% area.

Bank of America Merrill Lynch was the bookrunner.

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.

Issuer:	Ruby Tuesday, Inc.
Face amount:	$250 million
Proceeds:	$245.89 million
Maturity:	May 15, 2020
Securities:	Senior notes
Bookrunner:	Bank of America Merrill Lynch
Co-lead managers:	Lazard Capital Markets, Wells Fargo Securities LLC
Co-managers:	Fifth Third Securities Inc., US Bancorp, PNC Capital Markets LLC, BB&T Capital Markets
Coupon:	7 5/8%
Price:	98.536
Yield:	7 7/8%
Spread:	639 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2016, then callable at a premium
Trade date:	May 7
Settlement date:	May 14
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¾% area
Marketing:	Roadshow

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