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Ruby Tuesday, Inc. Announces Pricing of Common Stock Offering


MARYVILLE, Tenn.--(BUSINESS WIRE)--Jul. 22, 2009-- Ruby Tuesday, Inc. (NYSE:RT) today announced the pricing of the previously announced offering of 10,000,000 shares of its common stock at a price to the public of $6.75 per share. The Company has granted the underwriters a 30 day option to purchase up to 1,500,000 additional shares to cover over-allotments, if any. The Company will use the net proceeds to pay down debt. The Company expects to close the offering on July 28, 2009. Wells Fargo Securities and BofA Merrill Lynch are joint book-running managers and SunTrust Robinson Humphrey and Morgan Keegan & Company, Inc. are co-managers of the offering.

The shares of common stock are being offered under an effective registration statement on Form S-3 filed with the Securities and Exchange Commission, including a related prospectus as supplemented by a prospectus supplement. The offering is being made solely by means of the prospectus and the accompanying prospectus supplement. This press release shall not constitute an offer to sell, nor a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

When available, a copy of the prospectus supplement and related prospectus for this offering may be obtained by contacting Wells Fargo Securities, 375 Park Avenue, New York, New York 10152, Attention: Equity Syndicate Department, telephone: (800) 326-5897, or BofA Merrill Lynch, 4 World Financial Center, New York, New York 10080, Attention: Prospectus Department, telephone: (212) 449-1000.

Ruby Tuesday, Inc. has Company-owned and/or franchise Ruby Tuesday brand restaurants in 46 states, the District of Columbia, Puerto Rico, Guam, and 13 foreign countries. As of June 2, 2009, the Company owned and operated 672 Ruby Tuesday restaurants, while domestic and international franchisees (including Hawaii) operated 173 and 56 restaurants, respectively.

Special Note Regarding Forward-Looking Information

This press release contains various forward-looking statements which represent our expectations or beliefs concerning future events, including one or more of the following: future financial performance and restaurant growth (both Company-owned and franchised), future capital expenditures, future borrowings and repayment of debt, availability of debt financing on terms attractive to the Company, payment of dividends, stock repurchases, and restaurant and franchise acquisitions and refranchises. We caution the reader that a number of important factors and uncertainties could, individually or in the aggregate, cause our actual results to differ materially from those included in the forward-looking statements (such statements include, but are not limited to, statements relating to cost savings that we estimate may result from any programs we implement, our estimates of future capital spending and free cash flow, our targets for annual growth in same-restaurant sales and average annual sales per restaurant, and our strategy to obtain the equivalent of an investment-grade bond rating), including, without limitation, the following: general economic conditions; changes in promotional, couponing and advertising strategies; guests’ acceptance of changes in menu items; guests’ acceptance of our development prototypes and remodeled restaurants; changes in our guests’ disposable income; consumer spending trends and habits; mall-traffic trends; increased competition in the restaurant market; weather conditions in the regions in which Company-owned and franchised restaurants are operated; laws and regulations affecting labor and employee benefit costs, including further potential increases in state and federally mandated minimum wages; costs and availability of food and beverage inventory; our ability to attract qualified managers, franchisees and team members; changes in the availability and cost of capital; impact of adoption of new accounting standards; impact of food-borne illnesses resulting from an outbreak at either Ruby Tuesday or other restaurant concepts; effects of actual or threatened future terrorist attacks in the United States; and significant fluctuations in energy prices.

Source: Ruby Tuesday, Inc.

Ruby Tuesday, Inc.
Steve Rockwell, 865-379-5700