Shake Shack talks $225 million seven-year convertible notes to yield 0%-0.25%, up 40%-45%

By Abigail W. Adams

Portland, Me., March 1 – Shake Shack Inc. plans to price $225 million of seven-year convertible notes after the market close on Monday with price talk for a coupon of 0% to 0.25% and an initial conversion premium of 40% to 45%, according to a market source.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $25 million.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to support growth and development, for working capital and for other general corporate purposes.

Shake Shack is a New York-based fast food restaurant chain.

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