CKE plans $450 million facility, $150 million notes for buyout

By Sara Rosenberg

New York, March 2 - CKE Restaurants Inc. detailed the financing for its acquisition by Thomas H. Lee Partners, including plans for a $450 million senior secured credit facility and the issuance of at least $150 million of senior unsecured notes, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The credit facility consists of a $75 million revolver and a $375 million term loan.

Bank of America and Barclays are the lead banks on the financing.

Under the agreement, Thomas H. Lee is buying CKE for $11.05 in cash per share.

The transaction is valued at roughly $928 million, including the assumption of about $309 million of net debt.

Other funding for the deal will come from up to $440 million in equity.

There is a 40-day go-shop period.

Closing on the buyout is expected to occur in the second quarter, subject to approval by shareholders, regulatory approval and other customary conditions.

CKE Restaurants is a Carpinteria, Calif.-based owner of Carl's Jr. and Hardee's quick-service restaurant chains.

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