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The initial purchasers of the Notes have a 13-day option to procure up to an additional $25 million Notes.
Cracker intends to use approximately $27.8 million of the net proceeds to fund the cost of entering into the convertible note hedge transactions.
The remaining proceeds would be used to repay a portion of the indebtedness outstanding under Cracker Barrel’s revolving credit facility and general corporate purposes.
The sale of the Notes to the initial purchasers is expected to settle on June 18, 2021. The notes will be senior, unsecured obligations of Cracker Barrel and accrue interest at a rate of 0.625% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2021.
The notes will be redeemable but only if the last reported sale price per share of Bandwidth’s stock exceeds 130% of the conversion price for a specified period.
The Notes will be convertible based on an initial conversion rate of 5.3153 shares of Cracker’s stock per $1,000 principal amount of Notes equivalent to an initial conversion price of $188.14 per share, signifying a premium of 25% to the closing price of $150.51 on June 15, 2021.
The company’s cash and equivalents stood at $384.5 million as of April 30, 2021.
Price action: CBRL shares are trading higher by 0.91% at $151.88 on the last check Wednesday.
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