CKE redeems $20 million of 11 3/8% notes, gets no tenders in offer

By Marisa Wong

Madison, Wis., Jan. 4 - CKE Restaurants, Inc. announced that the tender offer for its 11 3/8% senior secured second-lien notes due 2018 expired on Dec. 29 with no tenders.

The tender offer was for up to $27,871,000 of the notes at an offer price of 103.

CKE was required to make the tender offer under the terms of the indenture governing the notes as a result of its completion of a series of sale leaseback transactions involving certain restaurant properties.

Concurrently, CKE announced it completed the redemption of $20 million of its 11 3/8% notes on Wednesday. The notes were redeemed at 103 plus accrued interest to, but excluding, the redemption date.

Under the terms of the redemption, the total principal amount of notes to be redeemed would have been reduced dollar for dollar by the total amount of notes in excess of $10 million purchased by CKE in the tender offer. Because no notes were tendered in the tender offer, CKE redeemed the planned $20 million principal amount of notes in full.

Following the redemption, $532.1 million principal amount of the notes remains outstanding.

CKE Restaurants is the Carpinteria, Calif.-based owner of Carl's Jr. and Hardee's quick-service restaurant chains.

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