Carrols downsizes to $180 million, talks notes 9%-9¼%, shifts $20 million to bank loan

By Paul A. Harris

St. Louis, Dec. 7 - Price talk of 9% to 9¼% emerged Tuesday on Carrols Corp.'s downsized $180 million offering of eight-year senior subordinated notes (B3/B-), which are non-callable for four years, according to an informed source.

Pricing is expected on Wednesday.

The offering was decreased from $200 million, with the company shifting $20 million to its credit facility.

JP Morgan and Banc of America Securities LLC are joint bookrunners for the Rule 144A offering.

Proceeds will be used to fund the recapitalization of the company, including the tender for its $170 million of 9½% senior subordinated notes, and will also be used to pay a $141 million distribution to shareholders. The sponsors are Madison Dearborn Partners and BIB Holdings.

Carrols is a Syracuse, N.Y., restaurant company, the largest franchisee of Burger King restaurants.

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