BUCA, Inc. Announces Sale of Vinny T's of Boston to Bertucci's Corporation
BUCA, Inc. (Nasdaq:BUCA) announced the sale effective today of its 11 Vinny T's of Boston restaurants to Bertucci's Corporation, which operates 92 brick oven Italian restaurants in 11 states and the District of Columbia.
The sale price was $6.8 million; of which $3.0 million was to be paid in cash at the closing and $3.8 million is to be paid through a promissory note issued at closing. The promissory note matures on June 15, 2008 or earlier upon the occurrence of certain other events, including a change in control of Bertucci's or the repayment or refinancing of Bertucci's outstanding senior notes. The purchase price is subject to a post-closing working capital adjustment.
The net proceeds of the sale will be used to reduce the Company's outstanding indebtedness. The Vinny T's of Boston restaurants have previously been classified as discontinued operations in the Company's financial statements.
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