Cara Operations sets roadshow for C$75 million second-lien notes

By Cristal Cody

Prospect News, Oct. 17 - Cara Operations Ltd. announced on Monday that it will hold a roadshow for its C$75 million offering of senior second-lien guaranteed notes to finance the acquisition of Prime Restaurants Inc.

Cara expects will hold the roadshow for the private sale on Thursday and Friday in Toronto.

Scotia Capital Inc. is the manager.

The bond offering is expected to close in early November.

Proceeds will be put into escrow to acquire the outstanding shares of Prime Restaurants for C$6.75 a share, to repay Prime's credit facility and to finance the cash settlement of Primes' restricted share units. The acquisition is valued at C$58.9 million.

The takeover must receive court support and approval from shareholders of Prime Restaurants. The acquisition is expected to close in January.

Vaughan, Ont.-based Cara is Canada's largest full-service restaurant operator with brands that include Swiss Chalet Rotisserie & Grill, Harvey's and Montana's Cookhouse.

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