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Steak'n Shake Recapitalization?


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A boardmember sent me a snippet stating that Biglari Holdings is recapitalizing Steak'n Shake by $160M through Jeffries?  Anyone find anything on that?  I'm looking and I don't see anything. 


From the snippet, it says he's looking at a $20M revolver and $140M 4-year term at 10% annual amortization.  If true, he's levering the chain and I believe pulliing the money out to the holding company.  Cheers!

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why do you say that?  Leverage, though high, isn't too crazy.  There's plenty of FCF, owned RE assets, plus support from the parent


He's paying 10% annually on it, correct?  He's going to have to get a pretty good return on the capital he's taking out. 


You spend all this time deleveraging because you want a rock-solid balance sheet, and then you lever it up again because you are impatient at deploying capital and need to get your hands on as much as you can.  Cheers!

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