SAN ANTONIO, TEXAS – The Steak n Shake Company has closed its acquisition of Western Sizzlin Corporation, effective March 30. The acquisition was affected by means of a merger of Western Sizzlin with, and into a subsidiary of, Steak n Shake, with Western Sizzlin continuing as the surviving corporation and as a wholly-owned subsidiary of Steak n Shake.
Former Western Sizzlin stockholders will receive a pro rata portion of subordinated debentures issued by Steak n Shake in the aggregate principal amount of $22,959,000 (or approximately $8.07 principal amount for each former Western Sizzlin share). This new issue of 14% redeemable subordinated debentures due 2015 will be issued only in principal amounts of $1,000 or whole multiples of that amount; fractional interests in debentures will be settled in cash.
Steak n Shake intends to promptly mail all Western Sizzlin stockholders of record, as of the close of business on March 30, a transmittal form by which they may surrender their stock certificate and obtain the merger consideration. All debentures, regardless of when delivered to a Western Sizzlin stockholder, will bear interest from March 30, 2010.