Cracker Barrel shares fell more than 2 percent after hours Monday after company leaders said they plan to sell $275 million of convertible debt.
The proposed private offering of five-year notes could grow to $300 million and still needs to be priced out. Cracker Barrel will have the choice to pay investors converting their notes in stock or cash. The company also will have the option to redeem the notes should its stock climb 30 percent above the (to-be-determined) conversion price after mid-2024.
Lebanon-based Cracker Barrel will use most of its expected proceeds to pay down some of its revolving debt — the balance on that line was $614 million on April 30 — and also plans to spend $35 million to buy back up to $35 million of its common stock in private deals. Any such buybacks would be the company’s first since the onset of the COVID-19 pandemic.
Shares of Cracker Barrel (Ticker: CBRL) closed Monday’s regular session at $153.37, down 1.3 percent from Friday, but slipped to $149.90 after hours. Year to date, they’ve risen nearly 20 percent.
Less than two months after raising $66 million in debt and preferred stock, Harrow Health executives are heading back to the capital markets, this time for a $17.5 million add-on debt offering — to buy back the newly issued preferreds.
The new notes will added to the 8.625 percent debt Nashville-based Harrow raised in early May. The company’s leaders have granted their underwriters the option to tack on another $2.5 million if the demand is there. Proceeds are slated to go to redeeming the company’s nearly $11 million in preferred stock and set aside some cash for possible acquisitions and other growth investments as well as capital projects and working capital.
Harrow shares (Ticker: HROW) fell slightly Monday to $8.50. They are up about 15 percent so far this year.