Back to News
Mergers & Acquisitions

Shake Shack Raises Capital, Returns Government Loan

By Paul Springer
|
Published: June 22nd, 2020
The company returned an emergency loan after raising $140 million and setting up a $75 million ATM.

With the fast food industry taking a hit from coronavirus, Shake Shack Inc. (SHAK) has raised $140 million in a public offering and established a $75 million at-the-market facility, returning an emergency government loan a day later.

The return of the emergency loan was announced on Monday, April 20, in a blog post in which the company insisted it was returning the $10 million loan because it believed smaller businesses have a greater need for capital. The funds will not actually be available to smaller businesses until Congress approves new loan funds.

While ATMs are often not initially–or ever–used, Shake Shack immediately tapped the ATM to raise $10 million in capital, according to an April 17 press release, effectively replacing the $10 million loan with equity. Complaints have risen over government cash being directed to large companies instead of smaller ones.

As of the end of its fiscal year in December, the New York-based company was running 254 restaurants along with service from a fleet of trucks called Shack Trucks.

Editor’s note: The original version of this article was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From Mergers & Acquisitions

Activism

The Deal Honors Top Women in Dealmaking

By The Deal Staff
|
Published: January 24th, 2021
The Deal honors exemplary women in the legal profession with a focus on M&A, private equity, restructuring and activist investing in this year's Top Women in Dealmaking list.
Mergers & Acquisitions

Drinks With The Deal: Goodwin Procter's Stuart Cable

By David Marcus
|
Published: January 7th, 2021
The vice chair and head of M&A discusses building the firm's biotech practice, helping Covid-19 vaccine developer Moderna grow over the years and recent transformational deals in the latest episode of the podcast.
Mergers & Acquisitions

Drinks With The Deal: Bryan Cave's Stephanie Hosler

By David Marcus
|
Published: December 18th, 2020
Hosler, who heads Bryan Cave Leighton Paisner's corporate and finance transactions group, talks about her experiences as a Latina M&A lawyer and her desire to help create a more diverse workplace on the latest Drinks With The Deal podcast.