Does Ruby Tuesday have its eye on other restaurant chains? The Maryville-based casual dining chain announced today it has launched a private offering
to sell senior notes due 2020 to finance a variety of corporate needs, including future acquisitions.
Proceeds from the sale will be used to repay outstanding debt under the company’s revolving credit facility, pay off certain mortgage obligations, and other general corporate purposes, including buying back stock and “to pursue potential strategic acquisitions,” according to a news release.
The Maryville-based company announced last month it would buy Lime Fresh Mexican Grill for $24 million. The purchase includes the brand’s intellectual property rights and the assets of seven company-owned restaurants. Ruby Tuesday signed a licensing agreement in 2010 with LFMG International LLC for the development rights to the South Florida-based restaurant chain.
Company shares gained about 4.5 percent to $7.11 in late morning trading.
Click here for the RT news release.