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California Pizza Kitchen steps up stock buyback
January 31, 2008
LOS ANGELES — California Pizza Kitchen Inc. has entered into an agreement with Bank of America to repurchase $46.3 million of its common stock in an accelerated stock repurchase program. The repurchase agreement is under the company's previously announced $50 million stock repurchase program authorized by its board of directors in August 2007.
The company currently has 28.9 million shares of common stock outstanding.
CPK also has amended its existing line of credit with Bank of America, increasing the credit facility from a maximum of $75 million to $100 million. The company plans to fund the accelerated stock repurchase through its existing cash balances as well as through the credit facility as needed.
As of Dec. 30, 2007, the company had total borrowings and outstanding letters of credit against the credit facility of $27 million. The company expects to secure a new revolving credit facility in the amount of $150 million to replace its current facility.
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