Daily News: November 2, 2012

Concord Advises on $5MM Facility for Pizza Franchisor


Concord Financial Advisors announced it served as an exclusive financial advisor on a $5 million senior secured credit facility consisting of a cash-flow term loan for a pizza franchisor in Indiana. The facility refinances existing debt and provides working capital.

A pizza franchisor had an expiring credit facility with the interest rate about to increase dramatically. The company also requested to consolidate the existing officer loan into the refinance. The company has a strong three-year trend of positive earnings and EBITDA, but did not meet the minimum levels required for a traditional leverage transaction and there were no current or fixed assets to support the loan as collateral. Concord was exclusively retained to refinance and restructure the existing debt into one consolidated cash-flow term loan.

Concord utilized a detailed memorandum featuring the company’s strong and sustainable cash flow, growth into new markets and profitability. After conducting a targeted process to local, regional and national commercial banks, Concord secured a commercial banking proposal that met the company’s objectives and closed the deal in under 90 days.

“Cash-flow deals for companies with less than $10 million of EBITDA are hard to find in the current market and Concord brought us to institutions that were truly interested in providing us a total solution. We are extremely happy with our current lender,