Promus, others tap investors

Nation's Restaurant News, Dec 16, 1991

Promus Cos., Marriott Corp. and Good Times Restaurants have individually tapped the bond and the public and private stock markets to raise capital for debt retirement, administrative purposes and expansion.

Marriott Corp. filed a shelf registration statement with the Securities and Exchange Commission for up to $230 million of convertible preferred stock. Marriott said the proceeds would be used for general corporate purposes and to repay debts. The shelf offering is the second time this year the company has used that format to raise capital. In May, Marriott filed a shelf offering of $500 million.

Meanwhile, the Memphis, Tenn.-based Promus Cos. and its Embassy Suites subsidiary told the SEC it intends to issue $200 million of unsecured, senior subordinated notes, due in 2001. The proceeds will be used to polish off long-term debts and refinance certain secured obligations.

Good Times Restaurants, the Boulder, Colo.-based chain, said it completed a $300,000 private placement to be used for restaurant development and working capital. The placement consisted of 14 units, each consisting of a $25,000, one-year promissory note at 10 percent and 7,500 common stock purchase warrants, exercisable at 40 cents per warrant.