Summary
Darden Restaurants, Inc. (DRI) announced on April 11, 2017, the successful pricing of $500 million in aggregate principal amount of 3.850% Senior Notes due 2027. The settlement date for these notes is scheduled for April 18, 2017. This debt issuance is a significant step in funding the previously announced acquisition of Cheddar's Restaurants Holding Corp. Investors should note that the net proceeds from this note offering, combined with existing cash reserves, will be directly allocated to finance the Cheddar's acquisition. This move underscores Darden's strategic growth initiatives and its commitment to expanding its restaurant portfolio. The offering was conducted under a Registration Statement filed with the SEC on October 6, 2016.
Key Highlights
- 1Darden Restaurants priced $500 million in Senior Notes due 2027.
- 2The notes carry a coupon rate of 3.850%.
- 3Settlement date for the notes is April 18, 2017.
- 4Proceeds will be used to fund the acquisition of Cheddar's Restaurants Holding Corp.
- 5The acquisition of Cheddar's was previously announced on March 27, 2017.
- 6The offering was executed under an Underwriting Agreement with major financial institutions.
- 7The notes were registered under a Form S-3 Registration Statement filed in October 2016.
Frequently Asked Questions
The primary purpose of issuing these $500 million Senior Notes is to fund the acquisition of Cheddar's Restaurants Holding Corp., a strategic move to expand Darden's restaurant portfolio.
The settlement date for the Senior Notes is scheduled for April 18, 2017, which is when Darden will receive the net proceeds from the sale.
The Senior Notes due 2027 carry a fixed interest rate of 3.850% per annum.
This debt issuance is a key component of the financing plan for the Cheddar's acquisition. The proceeds from the notes, along with other cash on hand, will be used to complete the transaction.