Carl’s Jr. Parent Buying Back Debt

CKE Restaurants Inc., which has seen the value of its stock drop by a third this year, said Wednesday that it is repurchasing $50 million of debt that is convertible into shares.

The company, which operates the Carl’s Jr. and Hardee’s restaurant chains, among others, said it has bought back $30 million in notes and plans to buy $20 million more. Anaheim-based CKE said it was able to buy the notes at a discount because their price was tied to the company’s deflated stock price.

“With the recent drop in CKE’s stock price and the associated reduced trading price of our notes, there was a great opportunity for CKE to repurchase notes at a discount and simultaneously reduce dilution,” Chief Executive William P. Foley said in a statement. “We believe this demonstrates our confidence in the company’s performance to the investment community.”

CKE’s stock closed Wednesday at $25.75, down 94 cents a share, in New York Stock Exchange trading. The stock hit a 52-week high of $45.81 in February.

This is the first stock or debt repurchase the company has made since the stock price began to decline, spokesman Loren Pannier said.