[Tue 8:12 a.m. July 18, 2000]
By DAVID A. FOX
Shoney's Inc. (SHOY.OB) said Tuesday that it has received commitments from owners of 70% of the Liquid Yield Option Notes (LYONs) and from owners of 73% of the 'TPI' convertible debentures to sell their securities back to the company.
With that development, the restaurant chain has begun its cash tender offer for $229 million of debt. It needs agreements from owners of 90% of both securities to complete the tender, Shoney's said.
Bondholders who tender their securities also will be consenting to certain proposed amendments to the securities' indentures. Shoney's is bidding 25 cents on the dollar for the $177 million principal amount of LYONs outstanding and 69.159 cents on the dollar for the $52 million of TPI notes.
The company owns, franchises or operates 1,084 Shoney's and Captain D's restaurants.
Shoney's shares settled Monday at 97 cents.
Editor's note: For related stories, please see the cover story on the top right of the web page and an article filed Monday afternoon in the "Top News" column.