Wendy's Shares Fall After News Of Note Offering

NEW YORK (AP) — Shares of fast food chain Wendy's/Arby's Group Inc. dropped Thursday after the company said it will sell $500 million in senior unsecured notes due in 2016 and use the proceeds to repay debt.

Shares fell 20 cents, or 5 percent, to $3.80 in morning trading.

After the market closed Wednesday, the company announced the private offering and said it will use the money to prepay about $125 million in borrowings outstanding under its senior secured term loan. Some of the money will also go to Wendy's/Arby's Group for general corporate purposes, including funding growth initiatives and returning capital to shareholders in the form of stock buybacks or dividends. ...