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Wellspring Capital Management Recapitalizes Checkers Drive-In Restaurants
November 29, 2012
NEW YORK--Wellspring Capital Management LLC (“Wellspring”) announced that its portfolio company Checkers Drive-in Restaurants, Inc. (“Checkers” or the “Company”) has closed on an offering of $160 million in aggregate principal amount of 11.000% senior secured notes due 2017. The Company used the net proceeds of this offering to refinance the Company’s existing debt and to pay its investors a dividend. The recapitalization will provide Checkers with additional financial flexibility to invest in its business.
Carl M. Stanton, a Managing Partner of Wellspring, said, “The combination of the improving fundamentals of the business, positive industry trends and record low interest rates, made this an ideal time to refinance Checkers’ debt. We are pleased to be able to improve the Company’s capital structure in a manner that allows us to return capital to our investors and position the Company for continued growth.”
Alexander E. Carles, a Partner of Wellspring, added, “In the past six years, our best-in-class management team has created a strong national growth platform by launching new products and driving business improvements through a combination of operating initiatives and franchise restaurant growth. The financial and operational support we have provided Checkers reflects the value Wellspring can add as a partner to companies.”
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. For additional information, please visit www.wellspringcapital.com
Checkers/Rally’s Drive-In Restaurants, Inc. is the largest double drive-thru restaurant chain in the United States. The company develops, owns, operates and franchises both Checkers and Rally’s® restaurants. Based in Tampa, Florida, it has almost 800 restaurants open across the U.S. In recent years, the brand has been awarded several of the industry’s most prestigious awards including: “Best Drive-Thru in America” by QSR Magazine and the “Hot! Again Award” from Nation’s Restaurant News. For more information about Checkers, please visit www.checkers.com.
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Mark Semer / Micheline Tang