Business
Cracker Barrel Announces Proposed Private Offering Of Convertible Senior Notes Due 2026
LEBANON, Tenn., June 14, 2021 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today announced its
About this update from Cracker Barrel Old Country Store, Inc.
[{"type":"text","content":"LEBANON, Tenn., June 14, 2021 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. (\"Cracker Barrel\" or the \"Company\") (Nasdaq: CBRL) today announced its intention to offer, subject to market conditions and other considerations, $275 million aggregate principal amount of convertible senior notes due 2026 (the \"notes\") in a private offering only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Securities Act\"). Cracker Barrel also intends to grant the initial purchasers of the notes an option to purchase, for delivery within a period of 13 days from, and including, the date the notes are first issued, up to an additional $25 million aggregate principal amount of notes in the private placement.\nThe notes will be senior, unsecured obligations of Cracker Barrel, will accrue interest payable semi-annually in arrears and will mature on June 15, 2026, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Cracker Barrel will settle conversions by paying or delivering, as applicable, cash and, if applicable, shares of its common stock, at Cracker Barrel's election. The notes will also be redeemable, in whole or in part, for cash at Cracker Barrel's option at any time on or after June 15, 2024 and on or before the 25th scheduled trading day immediately before the maturity date, in certain circumstances. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of Cracker Barrel's common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date Cracker Barrel sends the related redemption notice; and (2) the trading day immediately before the date it sends such notice. The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.\nCracker Barrel intends to use a portion of the net proceeds from the offering to fund the cost of entering into the convertibl...