Quizno's Commences $8 Per Share Self-Tender Offer<b></b>
Denver-The Quizno's Corp. announced recently it hascommenced a tender offer to purchase all outstanding shares of itscommon stock except for shares held by certain insiders at a priceof $8 per share, net in cash to the seller.
There are approximately 3 million shares of common stockoutstanding, of which approximately 51.6 percent currently areowned by Richard E. Schaden, president and CEO of The Quizno'sCorp.; Richard F. Schaden, vice president, secretary and a directorof The Quizno's Corp., and Frederick H. Schaden, a director ofQuizno's Corp. All three Schadens have indicated they would nottender their shares at this time.
The offer documents were mailed to all other shareholders today.The tender offer will expire at midnight Monday, December 11, 2000,unless it is extended by the company.
The company said the tender offer is conditioned, among otherthings, on 51 percent of the common shareholders besides theSchadens accepting the tender offer. The company may waive any suchcondition. It is also conditioned on the closing of a loan for upto $12 million with Levine Leichtman Capital Partners. The fundingagreement, combined with $6.2 million in available cash willprovide the funds necessary to purchase all remaining common stock,all preferred shares and options converted into common stock ,andwarrants held by Retail & Restaurant Growth Capital, L.P.
In the offer documents, the company said the purpose of theoffer is primarily to increase stockholder value by providingshareholders with an opportunity for cash liquidity at a premiumabove recently traded prices. The company cited low prices and lowtrading volume for its stock on the public market.
Despite strong, consistent performance in growth andprofitability, the average Quizno's stock price year-to-date isapproximately $6.50 per share. The $8 tender offers a premium of 23percent above that average price per share. -PRNewswire
