Buffets Holdings, Inc. Announces Pricing for Tender Offer of Its 13.875% Senior Discount Notes Due 2010.EAGAN, Minn. -- Buffets Holdings, Inc. ("Buffets Holdings") announced today that it has determined the tender offer yield for its outstanding tender offer and related consent solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with for any and all of its outstanding 13.875% Senior Discount Notes due 2010 (the "Buffets Holdings Notes"). The tender offer yield for the Buffets Holdings Notes tendered and accepted will be 5.395% and was determined as of 10:00 a.m., Eastern Time, on October 20, 2006 by reference to a fixed spread of 0.50% over the Treasury Rate of 4.895%, as determined pursuant to the Offer to Purchase and Consent Solicitation Statement, dated September 15, as amended. Assuming an early settlement date of November 1, 2006, the total consideration for each $1,000 principal amount at maturity of Buffets Holdings Notes validly tendered and not validly withdrawn at or prior to 9:00 a.m., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on October 19, 2006, the Early Tender Date, is $901.81, which includes a consent payment of $30 per $1,000 principal amount at maturity of Buffets Holdings Notes. Holders whose Buffets Holdings Notes are validly tendered after the Early Tender Date, but at or prior to 9:00 a.m., New York City time, on November 3, 2006, the Expiration Date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. for the tender offer, will be eligible to receive the tender offer consideration of $871.81 per $1,000 principal amount at maturity of Buffets Holdings Notes tendered, but will not be eligible to receive the $30 per $1,000 principal amount at maturity consent payment. Closing of the tender offer is subject to: (i) Buffets Holdings and Buffets, Inc. ("Buffets") having available funds sufficient to pay the total consideration with respect to all Buffets Holdings Notes tendered and all notes tendered pursuant to Buffets' tender offer for its 11.25% Senior Subordinated Notes, respectively, from the proceeds of a new notes offering, borrowings under its credit facility and/or real estate financing and (ii) certain other customary conditions. This news release is neither an offer to purchase nor a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to sell the Buffets Holdings Notes or other securities of either Buffets Holdings or Buffets. The offer is being made only by reference to the Offer to Purchase and Consent Solicitation Statement dated September 15, 2006 and related applicable Consent and Letter of Transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. , as amended. Copies of documents may be obtained from Morrow & Co., Inc., the information agent for the tender offer and consent solicitation, at (800) 607-0088 (toll free). Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 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., 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 Buffet 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion