Cara Operations solicits consents for 9 1/8% second-lien notes

By Jennifer Chiou

New York, Oct. 17 - Cara Operations Ltd. said it is soliciting consents from holders of its 9 1/8% senior secured second-lien guaranteed notes due Dec. 1, 2015. The company issued C$200 million of the notes in November 2010.

If approved, the proposed amendments will allow the company to, among other things, increase the amount of security that it can grant in relation to the debt it incurs in order to allow for the issue of new notes and provide it the option to elect to make calculations under the indenture in accordance with international financial reporting standards.

The solicitation will end at 6 p.m. ET on Oct. 31.

Those who deliver valid consents will receive a consent fee of $5.00 in cash for each $1,000 principal amount of notes if the proposed amendments are approved and effected and the company's proposed offering of C$75 million of senior secured second-lien guaranteed notes is completed on or before Jan. 4.

Scotia Capital Inc. is the solicitation agent (attn: Michael Lay at 416 863-7257/888 776-3666 or michael_lay@scotiacapital.com). Georgeson Shareholder Communications Canada Inc. is the information agent (888 605-8408).

Vaughan, Ont.-based Cara Operations is the largest full-service restaurant operator in Canada.

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