Dave & Busters seeking buyer after debt paydown

Nation's Restaurant News,  March 3, 2008  

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DALLAS -- Ending weeks of speculation, Dave & Buster's Inc. confirmed that it is considering putting itself up for sale. The operator of 49 entertainment and dining complexes said it had retained Jefferies & Co. Inc. to assist in exploring a possible sale and had reduced debt under its senior credit facility.

"The decision to engage Jefferies & Co. and reduce debt is a direct result of our continued strong comparable-store sales growth, substantial earnings growth and significant free-cash-flow generation," Steve King, Dave & Buster's chief executive, said in a statement.

The company said it had paid $10 million toward the early retirement of its senior credit facility during the Feb. 3-ended fourth quarter of fiscal 2007 and currently had no borrowings outstanding under its revolving credit facility. The debt reduction was funded from generated cash, Dave & Buster's said.

The company plans to report at the end of April its audited financial results for fiscal 2007.

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