Carrols Restaurant Group, Inc. Prices Offering of $300 Million of Senior Notes Due 2029

Rhea-AI Summary

Carrols Restaurant Group (NASDAQ: TAST) announced a private offering of $300 million in 5.875% Senior Notes due 2029, priced at par. The offering is set to close on June 28, 2021. Proceeds will be used to repay existing term loans and for working capital, which may include common stock repurchases or dividends. The Notes are not registered under the Securities Act and may only be offered in compliance with specific regulations. Forward-looking statements include potential risks, particularly related to COVID-19.

Positive

• Secures $300 million in financing through Senior Notes.
• Intends to use proceeds to reduce debt, enhancing balance sheet stability.
• Potential for future stock repurchases or dividends, signaling confidence in cash flow.

Negative

• Dependence on the successful closure of the offering on June 28, 2021.
• Forward-looking statements indicate uncertainty and risks associated with future performance.

SYRACUSE, N.Y., June 23, 2021 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (NASDAQ: TAST) (“Carrols Restaurant Group”) announced today that it has priced a private offering of $300 million of 5.875% Senior Notes due 2029 (the "Notes"). The Notes will be issued at par. The offering is expected to close on June 28, 2021, subject to customary closing conditions.

Carrols Restaurant Group intends to use the net proceeds of the private offering of the Notes and $46 million of revolving credit borrowings under its senior credit facility (i) to repay $74.0 million of outstanding term loan B-1 borrowings and $244.0 million of outstanding term loan B borrowings under its senior credit facility, (ii) to pay fees and expenses related to the offering of the Notes and the amendment to its senior credit facility, and (iii) for working capital and general corporate purposes, including for possible future repurchases of its common stock and/or a dividend payment and/or payments on its common stock.

The Notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from such registration requirements. The Notes may be resold by the initial purchasers pursuant to Rule 144A and Regulation S under the Securities Act.

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 amount of the private offering by Carrols Restaurant Group (TAST)?

Carrols Restaurant Group announced a private offering of $300 million in 5.875% Senior Notes due 2029.

When is the closure date for Carrols Restaurant Group's private offering?

The offering is expected to close on June 28, 2021.

What will the proceeds from the offering be used for?

Proceeds will be used to repay outstanding term loans, pay related fees, and for working capital including potential stock repurchases or dividends.

What are the risks mentioned in the Carrols Restaurant Group press release?

The risks include uncertainties related to forward-looking statements and the impact of COVID-19 on the business.