CBRL ( CBRL), the restaurant operator in the midst of a restructuring, set the price range of a previously disclosed stock buyback Friday that could result in the repurchase of 35% of its outstanding stock. The Cracker Barrel operator said it will buy back up to 16,750,000 shares at a price between $42 and $46 a share through a Dutch auction tender beginning now. The range embraces Thursday night's closing price of $44.67 and the $44.30 closing quote a day before the repurchase was announced. In a Dutch auction, shareholders tender shares to the company at a price within the stated range, and the company buys back a preset number of shares at the lowest price possible. The tactic employs an element of game theory as shareholders weigh their wish for the best price possible against the actions of other shareholders. CBRL is financing the transaction through borrowed money, which means it will raise the percentage of debt financing in its capital structure. It's a strategy that has caught on with a number of companies recently amid low interest rates and borrowing spreads. "With the assistance of management and outside advisers, our board has undertaken a review of the company's strategic plan, its use of cash flows from operations for, among other things, capital expenditures, debt repayment, dividends and share repurchases, and a variety of alternatives for using the company's available financial resources," CBRL said. "Based upon its review, the Board determined that increasing the Company's financial leverage to fund the tender offer is a prudent use at this time of our financial resources and an effective means of providing value to our shareholders."