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 the proration factor for shares tendered at or below $21.375 per share to be approximately 10% to 15%. 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factor and the purchase price are subject to final confirmation and the proper delivery of all shares tendered and not withdrawn, including shares tendered pursuant to the guaranteed delivery procedure.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 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.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.