CKE Restaurants to fund $77.3 million stock buyback with bank borrowings

New York, April 3 - CKE Restaurants, Inc. said it plans to fund the $77.3 million cost of a stock repurchase with borrowings under its revolving credit facility.

The Carpinteria, Calif., restaurant operator announced Tuesday that it has agreed to buy 4,073,239 shares, or about 6.1%, of its common stock at the April 2 closing price of $18.97 per share from Pirate Capital, LLC.

"This transaction presented the company with an opportunity to repurchase approximately 6.1% of our outstanding common shares very efficiently," said Andrew Puzder, president and chief executive officer of CKE Restaurants, in a news release.

"We are very pleased to be able to take advantage of this opportunity to increase shareholder value."

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