Cracker Barrel steadies after convertible debt sake boosted to $300 mln

Cracker Barrel Old Country Store

11/06/2025 14:15

** Shares of Cracker Barrel Old Country Store CBRL.O flat premarket after upsized capital raise

** Lebanon, Tennessee-based casual dining chain late Tues announced $300 mln 1.75% convertible bonds (CBs) due 2030

** Initial conversion price of $72.23 represents 32.5% premium to stock's last close

** CBRL shares on Tues dropped ~10% to $54.51 after co late Mon announced $275 mln CB deal

** Co intends to use ~$146 mln of net proceeds to repurchase $150 principal outstanding of its 0.625% CBs due 2026, and remainder for general purposes, including debt repayment

** It also plans to use about $14.3 mln of proceeds for capped calls, derivative transactions to offset dilution

** Through Tues, stock up 3% YTD, giving co ~$1.2 bln market cap

** Avg rating among 10 analysts covering CBRL is "hold" and median PT is $55, up from $48 a month ago, latest LSEG data shows

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))