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Checkers & Rally's PIK toggle high yield bonds price at 99 to yield 12%

checkers rally logoCheckers & Rally’s Restaurants today completed an offering of senior PIK toggle notes via sole bookrunner Jefferies, according to sources. The stealthy, unrated print totals just $25 million and comes under Rule 144A for life. Terms include a special change-of-control optional redemption feature for 1.5 years, at 103% of par, and thereafter, it’s callable at 103 for six months, then at par thereafter. Proceeds support a dividend to equityholders, sources noted. Checkers is a quick-service restaurant franchise operating both Checkers and Rally’s brand drive-through restaurants in the U.S. Terms:

Issuer Checkers & Rally’s Restaurants
Ratings NR/NR
Amount $25 million
Issue senior PIK toggle notes (144A life)
Coupon 11.625% cash / 12.375% in kind
Price 99
Yield 12.023%
Spread T+1,136
FRN eq. L+1,125
Maturity Nov. 1, 2016
Call nc1.5
Trade Oct. 11, 2013
Settle Oct. 17, 2013 (t+3)
Books JEFF
Px talk n/a
Notes calls: May 1, 2015 @103; Nov. 1, 2015 @par; carries 1.5-year change-of-control optional redemption @103