Home Madrid Economy Need cash, Dave & Buster’s plans to sell stocks

Need cash, Dave & Buster’s plans to sell stocks


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With its massive complexes left empty by the coronavirus shutdown, Dave & Buster’s have chosen to sell stocks to keep themselves out of the water.

The Dallas-based food and games chain said on Tuesday it had reached an agreement with Jefferies to sell up to $ 75 million in stock as part of a “market offer” program.

This program is designed to raise funds to help the company overcome its coronavirus stop.

The company has agreed in an agreement with the lenders to make “commercially reasonable efforts” to begin selling shares within 60 days, according to a federal securities filing Tuesday.

Dave & Buster’s stock fell 12% when the sale was announced. Its stock price has been volatile lately, but has lost more than 70% of its value since February, largely due to concerns about the shutdown.

The closure, including “the closure of our stores and the resulting impact of the closures on our revenues, profitability and ability to meet covenants, may continue to have a significant effect on the market price of our common shares. “the company said in a statement. a deposit.

Dave & Buster’s faced major questions about its ability to weather the shutdown, given its overall debt load and heavy reliance on restaurant customers.

The company at the beginning of the month put more than 15,000 employees on leave and closed all of its 137 locations. Dave & Buster’s has $ 648 million in debt and approximately 15 weeks of operating cash flow.

“We thoughtfully and quickly implemented a comprehensive plan with a simple goal,” CEO Brian Jenkins told analysts earlier this month, according to a transcript on the financial services site Sentieo. “Reopen our stores as soon as possible and safely so that we can welcome back our team members on leave, reactivate our games and bring fun to the communities we serve, some of which we believe will be very important to the world. as our company emerges from this situation. pandemic.”

Lenders have granted the company waivers of many of the financial requirements of its loan agreement, and some landlords have given the company rent concessions.

Dave & Buster’s also revealed earlier this month that it was in talks with various parties to improve its cash flow to get it through the shutdown. Media reported that the company is in talks with some private equity groups. The sale of shares suggests that the company is taking another route.


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