PE Deals

Arbour Lane, Garnett Station and Guggenheim Investments recap Checkers Drive-In Restaurants

According to the terms of the transaction, Arbour Lane, Garnett Station and Guggenheim Investments have now become majority owners of Checkers.

-
  • The transaction greatly reduced Checkers’ debt from about $300 million to $75 million
  • Also, as part of the agreement, Checkers has secured an additional $25 million in new debt financing to support the company’s store remodeling program and other growth initiatives
  • Based in Tampa, Florida, Checkers Drive-In Restaurants has more than 800 restaurants

Arbour Lane Capital Management, Garnett Station Partners and Guggenheim Investments have recapitalized Checkers Drive-In Restaurants, the owner, operator and franchisor of Checkers and Rallys restaurants.

According to the terms of the transaction, Arbour Lane, Garnett and Guggenheim have now become majority owners of Checkers.

The transaction greatly reduced Checkers’ debt from about $300 million to $75 million.

Also, as part of the agreement, Checkers has secured an additional $25 million in new debt financing commitments to fund the company’s store remodeling program and other growth initiatives.

“This is a positive development for the company and our stakeholders,” said Frances Allen, President & CEO of Checkers Drive-In Restaurants, Inc. “This refinancing significantly strengthens our balance sheet by, among other things, equitizing our short-term debt maturities. The recapitalization provides us with the financial flexibility we need to better position ourselves to invest in and continue growing our business.”

Miller Buckfire is Checkers’ investment banker, and Paul, Weiss, Rifkind, Wharton & Garrison, LLP, is legal counsel. Province, LLC, is the senior lenders’ financial advisor and Paul Hastings, LLP, is their counsel.

Based in Tampa, Florida, Checkers Drive-In Restaurants has more than 800 restaurants.