Carrols Restaurant Group, Inc. Announces Offering of Senior Notes
Carrols Restaurant Group (NASDAQ: TAST) has announced a private placement offer of senior notes due 2029, totaling $300 million. The largest Burger King franchisee in the U.S., it aims to utilize the net proceeds to repay $318 million in outstanding loans, cover offering expenses, and fund working capital. The notes will be offered to qualified institutional buyers and non-U.S. persons only, without registration under the Securities Act. The company noted forward-looking statements regarding its business risks, particularly related to COVID-19.
- Intended use of $300 million proceeds to repay high-interest debt, potentially improving cash flow.
- Funds may also support stock repurchases and dividends, which could bolster shareholder value.
- The company is increasing leverage with $300 million in new debt, adding to existing borrowings.
- Risks associated with market conditions and COVID-19 may impact future performance.
SYRACUSE, N.Y., June 23, 2021 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (NASDAQ: TAST) (“Carrols Restaurant Group”) announced today that it plans to offer, in a private placement, senior notes due 2029 in the aggregate principal amount of
The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in transactions outside the United States under Regulation S under the Securities Act. The Notes will not be registered under the Securities Act and may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from registration requirements.
This press release is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act. This press release is for informational purposes only and is not an offer to sell or a solicitation of an offer to purchase the Notes.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Except for the historical information contained in this news release, the matters addressed are forward-looking statements. Forward-looking statements, written, oral or otherwise made, represent Carrols Restaurant Group's expectation or belief concerning future events. Without limiting the foregoing, these statements are often identified by the words "may", "might", "believes", "thinks", "anticipates", "plans", "expects", "intends" or similar expressions. In addition, expressions of our strategies, intentions, plans or guidance are also forward-looking statements. Such statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. You are cautioned not to place undue reliance on these forward-looking statements as there are important factors that could cause actual results to differ materially from those in forward-looking statements, many of which are beyond our control. Investors are referred to the full discussion of risks and uncertainties, including without limitation the impact of COVID-19 on Carrols Restaurant Group’s business, as included in Carrols Restaurant Group's filings with the Securities and Exchange Commission.
Investor Relations:
Raphael Gross
203-682-8253
investorrelations@carrols.com
FAQ
What is the purpose of Carrols Restaurant Group's $300 million senior notes offering?
Who can purchase the senior notes being offered by Carrols Restaurant Group?
How much debt is Carrols Restaurant Group planning to repay with the new notes?