ADDISON, Texas (AP) — Fiesta Restaurant Group Inc., which owns Pollo Tropical and Taco Cabana restaurant chains, said Friday that it increased the size of its public offering of common stock to 2.7 million shares and priced it at $46 per share.
The company previously planned to offer $100 million of common stock. All of the shares are being sold by Fiesta. The price represents a 2 percent discount to Fiesta's Thursday closing stock price of $47.06.
The offering's underwriters have also been granted a 30-day option by the company and some of its executives to buy up to 405,000 more shares of common stock, of which 26,664 shares are currently issued and outstanding and held by the company executives.
Fiesta will not receive any of the proceeds from the sale of shares of stock by the shareholders. The offering is expected to close on Wednesday. The company plans to use the proceeds to pay off debt.
Jefferies LLC, Wells Fargo Securities LLC and Raymond James & Associates Inc. are the offering's underwriters.
Fiesta shares rose $1.84, or 3.9 percent, to $48.90 in morning trading Friday.