Buffets, Inc. Announces Pricing of Senior Notes Offering.EAGAN, Minn. -- Buffets, Inc. ("Buffets"), a subsidiary of Buffets Holdings, Inc. ("Buffets Holdings"), announced today that it has priced an offering of $300.0 million in aggregate principal amount of its senior notes due 2014. The senior notes will bear interest at an annual rate of 12.5%. The offering is part of the financing for the previously announced acquisition of Ryan's Restaurant Group Ryan's is a buffet restaurant chain based primarily in the Southern and Midwestern United States. It is headquartered in Greer, South Carolina and operates 340 restaurants in 23 states. , Inc. Buffets intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the notes offering, together with cash on hand, the borrowings under a new credit facility and proceeds from a sale-leaseback transaction of certain Ryan's and Buffets restaurants to fund the Ryan's acquisition, repay its, Buffets Holdings' and Ryan's existing indebtedness and pay related transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . The offering of the notes is conditioned upon the consummation of the Ryan's acquisition. The offering of the notes is expected to close on or about November 1, 2006. The notes offering will be made solely by means of a private placement either to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933, as amended (the "Securities Act"), or to certain persons in offshore transactions pursuant to Regulation S under the Securities Act. The offering of the notes will not be and has not been registered under the Securities Act and the notes may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful. Forward-looking Statements The statements contained in this release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The risks and uncertainties involving forward-looking statements include, but are not limited to, general and economic conditions, negative publicity, the impact of competition, the seasonality of Buffets Holdings' business, adverse weather conditions, failure to realize the cost savings from its acquisition of Ryan's Restaurant Group, Inc., future commodity prices, fuel and utility costs, labor costs, employment and environmental laws, public health developments including avian flu avian flu: see influenza. , government regulations and inflation. For a detailed discussion of risks and uncertainties that you should consider, please refer to the "Risk Factors/Forward-Looking Statements" section contained in Buffets Holdings' Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. which was filed with the Securities and Exchange Commission on September 20, 2006. The statements in this release reflect Buffets Holdings' current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time and no obligation is undertaken to provide updates with respect to the information. About Buffets Holdings Buffets currently operates 340 restaurants in 32 states comprised of 331 buffet restaurants and nine Tahoe Joe's Famous Steakhouse(R) restaurants. The buffet restaurants are principally operated under the Old Country Buffet Old Country Buffet is a buffet-style, sit-down restaurant chain headquartered in Eagan, Minnesota with locations throughout the United States. Menu Items Old Country Buffet restaurants feature a wide spread of menu items, in the following categories: Its wide selection of food include pizza, hot dogs, hot wings, sliced ham among many others. (R) brands. Buffets also franchises eighteen buffet restaurants in seven states. |
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