Church’s Chicken Completes Debt Refinancing
Church’s Chicken announced that it has closed a new asset-backed securitization, comprised of $220 million of Senior Secured Notes, which have a maturity date of February 2018, and $25 million in Senior Secured Revolving Notes.
Church’s Chicken announced that it has closed a new asset-backed securitization, comprised of $220 million of Senior Secured Notes, which have a maturity date of February 2018, and $25 million in Senior Secured Revolving Notes. The new credit facility is the first whole-business securitization completed in the restaurant sector since 2007 and attracted significant demand from institutional investors. Proceeds from the securitization were used to repay the outstanding balance of the existing credit facilities, to pay related fees and expenses, and to pay a dividend to shareholders. Church’s Chicken is majority-owned by Friedman Fleischer & Lowe, a private equity firm based in San Francisco.
“This new financing structure provides Church’s Chicken with greater financial flexibility and a significantly lower cost of capital, which better positions us to execute on our strategy and achieve our growth objectives,” said Mel Deane, CEO of Church’s Chicken.
“This new financing structure provides Church’s Chicken with greater financial flexibility and a significantly lower cost of capital, which better positions us to execute on our strategy and achieve our growth objectives”
“Church’s Chicken enjoys great brand recognition and promising long-term growth prospects. We are pleased that we have been able to leverage these strengths to put a more efficient capital structure in place,” added Rajat Duggal, Managing Director at Friedman Fleischer & Lowe.
The securitization was arranged by Barclays Capital who acted as Sole Structuring Advisor and Sole Bookrunning Manager.
About Church's Chicken
Founded in San Antonio, Texas, in 1952, Church's Chicken is a highly recognized brand name in the Quick Service Restaurant sector and is one of the largest quick-service chicken concepts in the world. Church's Chicken serves freshly prepared, high quality, flavorful chicken meals with classic sides and handmade, from-scratch biscuits. As of January 2011, the Church's system consisted of more than 1,700 worldwide locations in the United States and 23 other countries, with system-wide sales approaching $1.2 billion.
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