Back Yard Burgers merger stalled by financing; closing date set

By Lisa Kerner

Charlotte, N.C., Oct. 31 - The merger of Back Yard Burgers, Inc. and BBAC, LLC is slated to close Nov. 5 pending completion of financing arrangements by BBAC and its lenders, it was announced on Wednesday.

As a result, the companies agreed to extend the termination date to Nov. 5 from Oct. 31.

It was previously reported that Back Yard Burgers stockholders approved the deal in August. Shareholders will receive $6.50 per share in the transaction, which is valued at about $38 million including debt. The deal had been expected to close in August.

Memphis-based Back Yard Burgers operates and franchises quick-service restaurants in 20 states.

BBAC is an investment partnership managed by Cherokee Advisors LLC, an Atlanta-based firm. Its principal investors include Reid M. Zeising of Cherokee Advisors, Pharos Capital Group, LLC and C. Stephen Lynn, former chairman and chief executive officer of Shoney's, Inc. and Sonic Corp.

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