CPK Amends Filing on IPO Price Estimates

Los Angeles-based restaurant chain California Pizza Kitchen Inc. estimated that its initial public offering will include 5.3 million common shares offered at $13 to $15 each. The company first filed for the stock sale in May, saying it probably would raise about $70 million. In an amended filing, the company estimates the stock sale will raise $68.3 million after expenses, assuming a share price of $14. It will use some of the money to repay $40 million of bank debt, and $23.7 million will go to payments tied to the conversion of preferred stock. CPK will have 17.9 million shares outstanding after the stock sale. Multiplying this number by a share price of $15 would give California Pizza Kitchen an initial market value of as much as $269 million. Underwriters for the stock sale will include Banc of America Securities, Deutsche Banc Alex. Brown and Robertson Stephens. The shares will trade on the Nasdaq Stock Market under the symbol CPKI. The company, which owns and franchises 100 restaurants, reported 1999 net income of $5.4 million, down from $10.6 million the year before, when it benefited from income tax allowances. Sales at stores open at least a year rose 4.1%.