M
ME NEWS
17 Jun 2025, 05:16
Cracker Barrel Prices $300 Million Convertible Notes Offering, Targets Debt Management and Strategic Hedging
Cracker Barrel has increased the size of its private offering of convertible senior notes to $300 million, up from the initially announced $275 million. The notes will carry a 1.75% annual interest rate and are set to mature in 2030. Investors have also been granted a 13-day option to purchase an additional $45 million in notes.
These unsecured notes will convert at an initial price of approximately $72.23 per share, representing a 32.5% premium over the stock's last closing price. Cracker Barrel plans to use a portion of the proceeds to repurchase $150 million of its outstanding 0.625% notes due 2026. Additionally, it will enter into capped call transactions to hedge potential equity dilution from note conversions.
The company expects to raise approximately $290.1 million in net proceeds and may use any remaining funds for general corporate purposes, including refinancing other debt.
Cracker Barrel has increased the size of its private offering of convertible senior notes to $300 million, up from the initially announced $275 million. The notes will carry a 1.75% annual interest rate and are set to mature in 2030. Investors have also been granted a 13-day option to purchase an additional $45 million in notes.
These unsecured notes will convert at an initial price of approximately $72.23 per share, representing a 32.5% premium over the stock's last closing price. Cracker Barrel plans to use a portion of the proceeds to repurchase $150 million of its outstanding 0.625% notes due 2026. Additionally, it will enter into capped call transactions to hedge potential equity dilution from note conversions.
The company expects to raise approximately $290.1 million in net proceeds and may use any remaining funds for general corporate purposes, including refinancing other debt.