Ruth's Hospitality seals $25 million; Palliser plans warrant placement; Songa to issue shares

By Stephanie N. Rotondo

Portland, Ore., Feb. 16 - Ruth's Hospitality Group Inc. announced Tuesday it had secured $25 million from a private placement of convertible preferred stock.

The company also raised $25 million from a rights offering. The total combined proceeds were used to repay borrowings under the company's credit facility.

Meanwhile, Palliser Oil & Gas Corp. is hoping to raise C$10 million from a private placement of special warrants. The price per warrant has yet to be determined.

Songa Offshore SE also announced a planned private financing. The Norwegian company will sell over 13 million shares in the deal, though a price per share has not yet been determined.

Ruth's seals $25 million

Heathrow, Fla.-based Ruth's Hospitality Group - the owner of such dining establishments as Ruth's Chris Steak House - announced that it had raised $25 million from a private placement of series A 10% convertible preferred stock.

Affiliates of Bruckmann, Rosser, Sherrill & Co. Management, L.P. were the sole investors.

The shares are initially convertible into approximately 8.62 million common shares.

Additionally, Ruth's also wrapped a rights offering for another $25 million. The company issued a total of 10.14 million shares at $2.50 per share.

Approximately $44.3 million of the proceeds from the placement and rights offering, along with cash on hand, was used to reduce borrowings under the company's existing credit facility. As a result of the repayment, a credit amendment went into effect.

Ruth's equity (Nasdaq: RUTH) gained 7 cents, or 2.24%, to $3.20. Market capitalization is $77.35 million.

Palliser planning warrant sale

Palliser Oil & gas is seeking up to C$10 million via a private placement of special warrants.

The price per warrant - which is convertible into common shares - will be determined within the context of the market. According to Carrie McLauchlin, chief financial officer, the pricing should be released "sometime this week."

McLauchlin told Prospect news that the placement agent, Jennings Capital Inc., wanted to wait to set the price of the warrants, as the company's shares began trading only last week.

"So they wanted us to trade for a few days before determining price," she said. "They are the ones helping us out and that's what they were comfortable with."

She added that the agent filled up the meeting docket rather quickly, mostly with "tier one" investors.

McLauchlin also said that the converted shares would be free to trade, as the company is putting together a prospectus.

Proceeds will be used for Palliser's 2010 heavy oil drilling and reactivation program, as well as for potential acquisitions and general corporate purposes. Settlement is expected by March 10.

Palliser's stock (TSX Venture: PXL) improved by 2 cents, or 2.35%, to C$0.87.

Palliser Oil & Gas is a Calgary, Alta.-based junior oil and gas company.

Songa to issue shares

Songa Offshore, a Norwegian-based company that provides offshore drilling services, is planning a private placement of ordinary shares.

According to the released terms of the deal, Songa will issue 13.68 million shares, representing 10% of the total currently outstanding shares. The deal also includes an over-allotment option, which would bring the total number of shares issued in the transaction to 20.50 million shares.

The price per share "will be determined through an accelerated bookbuilding process and the minimum order has been set to the number of shares that equals an aggregate purchase price of at least NOK 1 million," the company said in a press release.

The bookbuilding process will end Feb. 17.

Proceeds will be used for general corporate purposes.

Songa's shares (Oslo: OSE) closed at NOK 29.64.

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