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The Cheesecake Factory Incorporated Prices Offerings of Convertible Senior Notes and Common Stock
CALABASAS HILLS, Calif.--(BUSINESS WIRE)-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) (the “Company”) today announced the pricing of its concurrent
About this update from The Cheesecake Factory Incorporated
[{"type":"text","content":" CALABASAS HILLS, Calif.--(BUSINESS WIRE)--\nThe Cheesecake Factory Incorporated (NASDAQ: CAKE) (the “Company”) today announced the pricing of its concurrent public offerings of $300,000,000 aggregate principal amount of 0.375% convertible senior notes due 2026 (the “notes”) and 3,125,000 shares of common stock, at a public offering price of $56.00 per share. The issuance and sale of the notes and common stock are scheduled to settle on June 15, 2021, subject to customary closing conditions. The Company also granted the underwriters of the note offering a 30-day option to purchase up to an additional $45,000,000 principal amount of notes solely to cover over-allotments and granted the underwriters of the common stock offering a 30-day option to purchase up to an additional 468,750 shares of common stock solely to cover over-allotments. The completion of the note offering will not be contingent on the completion of the common stock offering, and the completion of the common stock offering will not be contingent on the completion of the note offering.\n\nThe Company estimates that the net proceeds from the note offering will be approximately $291.0 million (or approximately $334.8 million if the underwriters of the note offering fully exercise their option to purchase additional notes), after deducting the underwriting discounts and commissions and estimated offering expenses. The Company estimates that the net proceeds from the common stock offering will be approximately $166.9 million (or approximately $192.0 million if the underwriters of the common stock offering fully exercise their option to purchase additional shares of common stock), after deducting the underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from the offerings to fund the cash consideration of approximately $457.4 million payable in the preferred stock repurchase and conversion described below to simplify the capital structure. The Company intends to use the remaining net proceeds for general corporate purposes, including the repayment of debt under the Company’s revolving credit facility.\n\nThe Company has entered into agreements with the holders of its outstanding Series A convertible preferred stock pursuant to which the Company will repurchase 150,000 shares of the outstanding Series A conver...