Ruth's Hospitality: Drops on $43.5 mln stock offering

Ruth's Hospitality

21/05/2020 12:56

** Shares of steakhouse operator  RUTH.O  down 9% at $8.30
premarket 
    ** Co Wednesday aftermarket announced public offering of
common stock  urn:newsml:reuters.com:*:nASA00R3Q
    ** Said Jefferies LLC has agreed to purchase $43.5 mln worth
of co's shares 
    ** RUTH also granted Jefferies an option to purchase up to
an additional $6.5 mln worth of shares, exercisable for up to 30
days 
    ** Co added it intends to use net proceeds from share sale
to repay borrowings under existing credit agreement and
strengthen balance sheet
    ** Stock down 58% YTD 

 (Reporting by Shradha Singh in Bengaluru)
 ((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780
Ext: 2804, outside U.S. +91 80 6182 2630;))