PE-backed Foodtastic closes C$175m debt facility for acquisitions

• Foodtastic said it expects to expand the debt facility to support further growth
• The new debt is in addition to the existing equity investment of Restaurant Royalty Partners, a joint venture of Oaktree Capital Management and JHR Capital
• Foodtastic’s facility comes on the heels of its acquisition of Quesada Burritos & Tacos

Foodtastic, a Montreal-based franchisor of restaurant brands, has closed a C$175 million revolving debt facility to fund acquisitions.

The lending group is led by National Bank of Canada and includes Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank, Canadian Western Bank and the Business Development Bank of Canada.

Foodtastic said it expects to expand the facility to support further growth.

The new debt is in addition to the existing equity investment of Restaurant Royalty Partners, a joint venture of Oaktree Capital Management and JHR Capital. The joint venture has backed Foodtastic since 2018.

In a statement, Peter Mammas, president and CEO of Foodtastic, said, “Our new debt facility will allow more leading restaurant brands to find a home in the Foodtastic portfolio. Our access to capital, brand management track record and reputation for an efficient transaction process continue to make us a buyer of choice in North America.”

Foodtastic’s facility comes on the heels of its acquisition of Quesada Burritos & Tacos, a Toronto-based quick-service restaurant brand providing burritos, tacos and salsas. The deal was announced earlier this month.