8-KOther EventsExhibits & Filings

DARDEN RESTAURANTS INC 8-K Report, Corporate Update (Oct 16, 2007)

Filed October 16, 2007For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) announced on October 16, 2007, the closing of a significant debt offering, raising a total of $1.15 billion through the sale of senior notes. This offering includes $350 million of 5.625% Senior Notes due 2012, $500 million of 6.200% Senior Notes due 2017, and $300 million of 6.800% Senior Notes due 2037. The primary purpose of this capital raise is to repay outstanding indebtedness incurred from a 364-day credit agreement, which was itself used to finance a portion of the acquisition of RARE Hospitality International, Inc. on October 1, 2007. This transaction demonstrates Darden's proactive approach to financing its growth and strategic acquisitions. By issuing long-term senior notes, the company is refinancing short-term debt and managing its capital structure to support its expansion initiatives, particularly following the significant acquisition of RARE Hospitality. Investors should note the total amount raised and the staggered maturity dates of the new debt, which indicate a strategic approach to managing future financial obligations.

Key Highlights

  • 1Darden Restaurants, Inc. successfully closed a $1.15 billion senior notes offering on October 16, 2007.
  • 2The offering comprised three tranches: $350 million in 5.625% Senior Notes due 2012, $500 million in 6.200% Senior Notes due 2017, and $300 million in 6.800% Senior Notes due 2037.
  • 3Proceeds will be used to repay $1.15 billion in outstanding debt from a 364-day credit agreement.
  • 4The credit agreement borrowings were used to fund a portion of the October 1, 2007 acquisition of RARE Hospitality International, Inc.
  • 5The debt offering was facilitated by a syndicate of prominent underwriters led by Banc of America Securities LLC and SunTrust Robinson Humphrey, Inc.
  • 6The senior notes are registered under a Form S-3 registration statement (File No. 333-146582).
  • 7The filing includes the underwriting agreement and related officer's certificates and opinions as exhibits.

Frequently Asked Questions

This Form 8-K filing announces the closing of Darden Restaurants, Inc.'s $1.15 billion senior notes offering and details the intended use of the proceeds, which is to repay outstanding debt related to the recent acquisition of RARE Hospitality International, Inc.

Darden raised $1.15 billion in aggregate principal amount through the sale of senior notes. This includes $350 million of 5.625% Senior Notes due 2012, $500 million of 6.200% Senior Notes due 2017, and $300 million of 6.800% Senior Notes due 2037.

The proceeds from this senior notes offering are being used to repay a $1.15 billion 364-day credit agreement. The borrowings under that credit agreement were previously used to finance a portion of the purchase price for the acquisition of RARE Hospitality International, Inc. on October 1, 2007.

The offering was made pursuant to an underwriting agreement with a syndicate of underwriters that included Banc of America Securities LLC, SunTrust Robinson Humphrey, Inc., Wachovia Capital Markets, LLC, Wells Fargo Securities, LLC, and several others.