CKE Plans Stock Sale

CKE Restaurants Inc. has announced plans to sell 2.5 million shares of common stock to raise nearly $80 million.

The restaurant chain plans to use $36 million to repay bank debt, according to documents filed Friday with the Securities and Exchange Commission. CKE, which owns and franchises Carl’s Jr. outlets, would use the remaining funds primarily to develop new company-owned restaurants and continue its restaurant remodeling and dual branding programs.

Alex. Brown & Sons Inc. is scheduled to underwrite the stock sale for CKE, which will have 21.76 million shares outstanding after the offering. Other underwriters will include Robertson, Stephens & Co. and Equitable Securities Corp.