TGI Fridays To Become Publicly Listed Company Following Merger With Allegro Merger Corp

At closing, TGIF's holders will receive a combination of cash and stock valued at $30 million and Allegro will assume approximately $350 million of net debt. The majority owners of TGIF, funds

Benzinga · 11/08/2019 20:41

At closing, TGIF's holders will receive a combination of cash and stock valued at $30 million and Allegro will assume approximately $350 million of net debt. The majority owners of TGIF, funds managed by TriArtisan Capital Advisors LLC ("TriArtisan"), expect to exchange a majority of their ownership in the TGIF business for shares of Allegro and significant holder MFP Partners, L.P. ("MFP"), led by Michael F. Price, intends to exchange all of its ownership in the TGIF business for shares of Allegro. TGIF's existing holders may receive an additional two million shares of Allegro common stock contingent upon achievement of specified post-closing performance metrics of the business. The pro forma valuation of the combined business, assuming a $10.16 stock price, represents a relative discount to comparable publicly traded dining concepts. This transaction is expected to allow the TGIF business to delever its balance sheet and provide it with the capital to fund future growth.