Babson Capital Management LLC said Wednesday that it has invested in the mezzanine debt notes of Collins Foods Finance Pty Ltd., a unit of Collins Food Group. Financial terms were not disclosed. The investment is part of a refinancing of Collins Food Group, a restaurant operator and franchisor based in Queensland, Australia. Babson Capital is an investment firm based in Springfield and Boston, Mass., and Charlotte, N.C.
Babson Capital Management LLC (Babson Capital), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced it has closed its first direct investment in Australia with an investment in the mezzanine debt notes for Collins Foods Finance Pty Limited, a wholly owned subsidiary of the Collins Foods Group.
The investment was made by Babson Capital Australia Pty Ltd (Babson Capital Australia), a wholly owned subsidiary of Babson Capital based in Sydney, as trustee and manager of the BCA Mezzanine Debt Trust. The investment is part of the refinancing of the acquisition debt facilities of Collins Foods Group and will position the business to continue to pursue organic growth initiatives and strengthen its competitive position in Australia and Asia.
Collins Food Group is a leading restaurant operator and franchisor based in Queensland, Australia. It has an operational footprint that includes 116 KFC restaurants across Queensland and two KFC restaurants in New South Wales, making it the largest KFC franchisee in Australia; 56 franchised Sizzler restaurants in six countries across Asia; and 26 Sizzler restaurants operated throughout Queensland, Western Australia and New South Wales.
“We are delighted to support Collins Foods Group, as well as its management team and shareholders, through this investment,” said Shane Forster, Managing Director, Babson Capital Australia.
“We look forward to pursuing similar mezzanine debt and private equity investment opportunities in the Asia Pacific region and continuing to build our presence in the market,” added Adam Wheeler, Managing Director, Babson Capital Australia.
The Collins Food Group investment was jointly arranged by Babson Capital’s Asia Pacific investment team led by Mike Hermsen, Managing Director, Babson Capital. Babson Capital’s Asia Pacific investment team, including four investment professionals based in Sydney and four investment professionals in Asia and the U.S., focuses on investments in mezzanine debt and equity securities of middle-market companies located primarily in Australia and New Zealand as well as select developed countries in Asia, including Hong Kong, Japan, Singapore, South Korea and Taiwan.