Einstein Noah i.p.o. raises $83.7 million

by Eric Schroeder
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GOLDEN, COLO. — Einstein Noah Restaurant Group Inc. closed a public offering of 5 million shares of its common stock at $18 per share, a transaction valued at $83,700,000, taking into account underwriting discounts and commissions.

As part of the transaction, the underwriters agreed to reimburse Einstein Noah $945,000 for certain expenses related to the offering. For its part, Einstein Noah granted the underwriters the right to purchase an additional 750,000 shares of common stock to cover over-allotments, if any, for a 30-day period commencing June 7.

Einstein Noah intends to use the net proceeds of the public offering to repay certain of its existing indebtedness.

Einstein operates about 600 restaurants in 36 states and the District of Columbia under the Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel brands. The company’s product offerings include fresh bagels and other bakery items baked on-site, made-to-order breakfast and lunch sandwiches on a variety of bagels and bread, soups and salads, desserts, coffees and an assortment of snacks.

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