Brinker $225 mln zero-coupon cvt debs talked 3%-3.5% yield, up 32%-37%

Nashville, Tenn., Oct. 4 - Brinker International Corp.is set to price $225 million of 20-year zero-coupon senior debentures after the market close Thursday (Oct. 4), according to sources familiar with the deal.

New price talk on the Rule 144A offering puts the securities at a yield of 3% to 3.5% and an initial conversion premium of 32% to 37%. Before the terrorist attacks on Sept. 11, the talk for the yield had been 2.75% to 3.25%.

The debentures are noncallable for three years and have puts in years two, four, 10 and 15. There is a $25 million greenshoe.

Lead managers for the offering are Banc of America Securities and Salomon Smith Barney.

The Dallas-based restaurant chain will use proceeds to repay or retire existing debt, to acquire certain assets from Sydran Group as previously announced, to repurchase shares under the company's stock buyback plan and for general corporate purposes.

The securities are rated Baa2 by Moody's Investors Service.

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