Cracker Barrel Plans to Issue $275 Million in Debt in Private Offering

By Kimberly Chin

Cracker Barrel Old Country Store Inc. expects to issue $275 million of convertible senior notes due 2026 in a private offering, the company said Monday.

It intends to allow the initial purchasers of its debt an option to buy up to an additional $25 million of notes in the private placement.

The notes will be fully or partially redeemable for cash at Cracker Barrel's option, the company said.

The Lebanon, Tenn., company plans to use some of the proceeds to fund the cost of its convertible note hedge transactions, a portion of its debt and for general corporate purposes.

Cracker Barrel said it expects to concurrently buy back up to $35 million of its shares in privately negotiated transactions.

Cracker Barrel's shares slipped 2.5% after hours to $149.50.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

06-14-21 1658ET