- Fiesta Restaurant Group Inc (NASDAQ:FRGI) has entered into a definitive stock purchase agreement to sell the Taco Cabana restaurant brand to YTC Enterprises LLC, an affiliate of Yadav Enterprises Inc.
- The agreement provides for the sale of all of the outstanding capital stock of Taco Cabana Inc, the parent company of the Taco Cabana business, for a cash purchase price of $85 million.
- The transaction is expected to close in the third quarter of 2021.
- Fiesta will use the sale proceeds to repay about $74.6 million of outstanding term loan borrowings.
- A portion of sale proceeds will be used for investments to accelerate Pollo Tropical’s (restaurant chain) growth.
- Fiesta’s cash and equivalents totaled $67.6 million as of June 27, 2021.
- Price action: FRGI shares closed higher by 11.24% at $14.94 on Thursday.
Incoming: Will The Slew Of Jobs Data This Week Sweat Or Soothe The Market’s Tapering Anxieties?
What is it about Fridays lately? Last week, Friday brought a critical speech from Fed Chairman Jerome Powell. This week, the August payrolls report comes Friday and could help shape market action and Fed policy as the month of September starts.
