Fiesta Restaurant Group jumps on Taco Cabana sale

Fiesta Restaurant

01/07/2021 15:16

** Shares of fast-food restaurant operator  FRGI.O  up 10.6%
at $14.8 in early trading
    ** Co enters into stock purchase agreement for sale of Taco
Cabana restaurant brand to YTC Enterprises LLC, an affiliate of
Yadav Enterprises Inc which operates close to 400 locations
 urn:newsml:reuters.com:*:nBw6ZtVFTa
    ** Agreement provides for sale of all of outstanding capital
stock of Taco Cabana Inc, parent co of the Taco Cabana business,
for cash purchase price of $85 mln
    ** Proceeds will be used to fully repay FRGI's ~$74.6 mln
outstanding term loan borrowings under Fiesta's senior credit
facility and to pay divestiture transaction fees and a loan
prepayment premium totaling ~$4.6 mln
    ** Transaction is expected to close in Q3
    ** Stock up ~29.8% YTD

 (Reporting by Sahil Shaw in Bengaluru)
 ((sahil.shaw@thomsonreuters.com))