Shares of Cheesecake Factory Inc. slid Thursday after an announcement by the company that it will make secondary offerings of $300 million in convertible senior notes and $175 million in common stock.The Calabasas-based restaurant company’s statement indicated that proceeds from the offerings, about $457 million, will go to repurchase 150,000 shares of preferred convertible stock in order to simplify its capital structure. Any net proceeds will be used for general corporate expenses, including the repayment of debt under the company’s revolving credit line.The notes will be due in 2026 and interest will be payable semi-annually. Underwriters are expected to be granted an over-allotment of an additional $45 million of notes and an additional $26.25 million of common stock.After five straight days of gains, shares of Cheesecake Factory (CAKE) fell following the announcement on Thursday, down $4.75, or 7.71 percent, to close at $56.86 on the Nasdaq, a market that gained less than a percent.
Cheesecake Factory Shares Fall After Announcement of Stock, Debt Offerings
