Cheesecake Factory gets Investment $cake
he Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced that it has closed on a $200 million convertible preferred investment from affiliates of Roark Capital.
"We are pleased to have found a high-quality partner in Roark, who we are confident will add significant value to The Cheesecake Factory Incorporated," said David Overton, Chairman and Chief Executive Officer. "This transaction not only meaningfully enhances our liquidity position to navigate the near-term COVID-19 landscape and get our affected staff members back to work as soon as practicable, but also importantly, solidifies our ability to manage the business for the long-term for all of our stakeholders once we emerge on the other side of this crisis. Moreover, Roark’s investment underscores the strength of our brands, market positioning and long-term growth prospects."
Neal Aronson, Founder and Managing Partner of Roark said, "We have long admired The Cheesecake Factory and the culture that David and his team have built." In connection with this investment, the Board of Directors will be expanded from eight to nine members and Paul Ginsberg, President of Roark, will join the Company’s Board of Directors as an independent member. Ginsberg said, "We believe The Cheesecake Factory, North Italia and the FRC brands are uniquely positioned to maintain their leadership in experiential dining and look forward to a partnership with the board and management team to drive long-term value for all shareholders."
Wells Fargo Securities, LLC and J.P. Morgan Securities LLC served as financial advisors and Latham & Watkins LLP served as legal advisor to The Cheesecake Factory Incorporated in this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Roark.
Source businesswire
"We are pleased to have found a high-quality partner in Roark, who we are confident will add significant value to The Cheesecake Factory Incorporated," said David Overton, Chairman and Chief Executive Officer. "This transaction not only meaningfully enhances our liquidity position to navigate the near-term COVID-19 landscape and get our affected staff members back to work as soon as practicable, but also importantly, solidifies our ability to manage the business for the long-term for all of our stakeholders once we emerge on the other side of this crisis. Moreover, Roark’s investment underscores the strength of our brands, market positioning and long-term growth prospects."
Neal Aronson, Founder and Managing Partner of Roark said, "We have long admired The Cheesecake Factory and the culture that David and his team have built." In connection with this investment, the Board of Directors will be expanded from eight to nine members and Paul Ginsberg, President of Roark, will join the Company’s Board of Directors as an independent member. Ginsberg said, "We believe The Cheesecake Factory, North Italia and the FRC brands are uniquely positioned to maintain their leadership in experiential dining and look forward to a partnership with the board and management team to drive long-term value for all shareholders."
Wells Fargo Securities, LLC and J.P. Morgan Securities LLC served as financial advisors and Latham & Watkins LLP served as legal advisor to The Cheesecake Factory Incorporated in this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Roark.
Source businesswire