Industry News | July 30, 2012

CKE Announces Initial Public Offering

CKE Inc., parent company to Hardee's and Carl's Jr., announced today that it has commenced an initial public offering of 13,333,334 shares of its common stock at an anticipated public offering price between $14.00 and $16.00 per share.

The company is offering 6,666,667 of the shares, and 6,666,667 are being offered by the sole stockholder of the company. In addition, the underwriters have an option, exercisable within 30 days after the date of the final prospectus relating to the offering, to purchase up to an additional 2,000,000 shares from the selling stockholder.

CKE will not receive any proceeds from the sale of the shares by the selling stockholder. The company has applied to list its common stock on the New York Stock Exchange under the symbol “CK.”

The company intends to use a portion of the net proceeds that it receives from the offering to redeem approximately $82.1 million aggregate principal amount of its 11.375 percent Senior Secured Second Lien Notes due 2018 and to pay the related early redemption premiums (for a total redemption price of approximately $91.5 million plus accrued interest). The company also intends to use the remaining proceeds it receives for general corporate purposes.

The offering is being made through an underwriting group led by Morgan Stanley, Citigroup, and Goldman, Sachs & Co. Barclays, Credit Suisse, and RBC Capital Markets are also acting as joint book-running managers in the offering. Apollo Global Securities, Cowen and Company, and KeyBanc Capital Markets are acting as co-managers of the offering.

CKE is one of the world's largest operators and franchisors of quick-service restaurants. As of the end of the first quarter of fiscal 2013, the company, through its subsidiaries, had a total of 3,263 franchised or company-operated restaurants in 42 states and 25 foreign countries primarily under the Carl's Jr. and Hardee's. brands.

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