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Carrols tenders for 11¼% senior secured second-lien notes due 2018
New York, April 15 – Carrols Restaurant Group, Inc. announced a tender offer and consent solicitation for its $150 million of 11¼% senior secured second-lien notes due 2018.
The company is offering $1,063.75 per $1,000 principal amount of the notes, which includes a consent payment of $30.00 per $1,000 that will only be paid to those who tender and deliver consents by the consent date of 5 p.m. ET on April 28.
The offer ends at 11:59 p.m. ET on May 12.
Carrols will also pay accrued interest up to but excluding the payment date.
The initial payment date for notes tendered by the consent deadline is expected to be April 29.
In the consent solicitation, Carrols is seeking to amend the note indenture to eliminate a significant portion of the restrictive covenants, eliminate certain events of default, release all of the collateral securing the obligations of Carrols and the guarantors under the notes and amend the number of days prior to any redemption date that Carrols must send a notice of redemption.
The company needs consents from holders of a majority of the notes to amend the indenture and from holders of 66 2/3% of the notes to release the collateral.
Holders who tender will be required to deliver consents and consents may not be given without tendering.
The offer is subject to conditions including receipt of the necessary consents, the completion of the sale of at least $200 million of new senior secured second-lien notes and the amendment of the company’s credit agreement.
Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is dealer manager and solicitation agent. D.F. King & Co., Inc. (866 829-0541, banks and brokers call 212 269-5550, or carrols@dfking.com) is information agent and tender agent.
Carrols is a Syracuse, N.Y.-based Burger King franchisee.
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