WICHITA, Kan., June 17, 2002 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. ("Lone Star") (Nasdaq:STAR) today announced the preliminary results of its modified Dutch auction tender offer, which expired at Midnight on June 14, 2002. Lone Star commenced the tender offer on May 17, 2002 to purchase up to 4,000,000 shares of its common stock at a price between $20.50 and $22.50 per share, net to the seller in cash, without interest.
Based on a preliminary count by the depositary for the tender offer, Lone Star expects to purchase 4,000,000 shares of Lone Star common stock at $21.375 per share, or a total of $85,500,000. Due to over-subscription, Lone Star expects to purchase approximately 85% to 90% of the shares tendered at or below $21.375 per share, and to return to such shareholders approximately 10% to 15% of those shares tendered. All shares purchased in the tender offer will be purchased at the same price.
The actual number of shares to be purchased, the proration factor and the purchase price are subject to final confirmation and the proper delivery of all shares tendered and not withdrawn, including shares tendered pursuant to the guaranteed delivery procedure. The actual number of shares, the proration factor and purchase price per share will be announced promptly following completion of the verification process. Payment for shares accepted and return of all shares tendered but not accepted will occur promptly after determination of the number of shares properly tendered.
Lone Star Steakhouse & Saloon, Inc. owns and operates a chain of 249 domestic and 25 international Lone Star Steakhouse & Saloon restaurants. The Company also owns and operates five Del Frisco's Double Eagle Steak Houses and 15 Sullivan's Steakhouses.