Wells, JPMorgan Lead Fiesta Restaurant Refi
Fiesta Restaurant Group announced it entered into a new senior secured credit facility with a syndicate of lenders led by Wells Fargo Bank as administrative agent and a lender, and JPMorgan Chase Bank as syndication agent and a lender. The facility provides for up to $150 million of revolving credit borrowings (including $15 million available for letters of credit).
Fiesta also announced completion of a previously announced cash tender offer and consent solicitation for its $200 million of 8.875% senior secured second lien notes due 2016, which expired on December 11, 2013. On November 26, 2013, Fiesta accepted for purchase and payment $122,701,000 of the notes that were validly tendered and not withdrawn at or prior to 5:00 p.m. Eastern on November 25, 2013, representing 61.3% of the outstanding principal amount of the notes. No additional outstanding notes were tendered in the tender offer other than such notes repurchased on November 26, 2013.
Fiesta has used the net proceeds of the previously announced underwritten public offering (completed on November 20, 2013) of 3,105,000 shares of its common stock, which included 2,700,000 shares of common stock issued and sold by Fiesta and an aggregate of 405,000 additional shares of common stock that the underwriters purchased from Fiesta and certain executive officers of Fiesta, as selling stockholders, upon exercise of their over-allotment option, of which 378,336 shares of common stock were issued and sold by Fiesta and 26,664 shares of common stock were sold by the selling stockholders, and revolving credit borrowings under its new senior secured revolving credit facility, to repurchase all of its outstanding notes tendered pursuant to a tender offer and consent solicitation and redeem $77,299,000 principal amount of the notes not tendered and repurchased in the tender offer, (pay related fees and expenses of the transactions above and for general corporate purposes. The company did not receive any of the net proceeds from the sale of the company’s common stock in the public offering by the selling stockholders.
Wells Fargo Securities acted as dealer manager and solicitation agent for the tender offer and the consent solicitation, and D.F. King & Co acted as tender agent and information agent for the tender offer and consent solicitation.
Fiesta Restaurant Group owns, operates and is franchisor of the Pollo Tropical® and Taco Cabana® fast-casual restaurant brands, with 310 restaurants in the U.S. and internationally as of September 29, 2013.