Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Ruth’s Hospitality Group Inc. > News item |
Ruth's Hospitality draws on revolver to buy back convertibles
By Marisa Wong
Madison, Wis., March 9 - Ruth's Hospitality Group, Inc. said it used borrowings from its $100 million senior revolving credit facility to repurchase all of the outstanding series A 10% convertible preferred shares owned by affiliates of Bruckmann, Rosser, Sherrill & Co. LLC.
The company paid $60.21 million in cash, including accrued dividends, on March 8. The repurchased preferreds will be retired.
With the retirement of the preferred shares, Bruckmann, Rosser, Sherrill will relinquish its board seat held by Stephen Sherrill.
"We are pleased to announce the repurchase of our outstanding preferred shares," Ruth's Hospitality chairman, president and chief executive officer Michael O'Donnell said in a press release. "This transaction reflects the significant progress our entire team has made since [Bruckmann, Rosser, Sherrill's] investment in early 2010, which is further supported by the growth in sales and profitability that has allowed us to repay over $50 million in debt over the last seven quarters.
"Moreover, we believe that this transaction positions the company for improved earnings during the foreseeable future and enhances our ability to generate cash, while still giving us the balance sheet flexibility to continue to invest in our business."
Ruth's Hospitality is a Winter Park, Fla.-based restaurant company focused on the upscale dining segment.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.