Complexity

Client Background

We worked with a proven operator of a multi-brand family dining franchisee with 40 units and a track record of leading SSS growth. The operator previously owned a separate QSR business that became insolvent during the recession, resulting in personal bankruptcy and meaningful legacy liabilities straining the business

This situation required a lending partner to look past temporary complexities in the business by leveraging existing cash flow and to close on an expedited timeline.

Our Solution

CapitalSpring provided an interest-only 4x unitranche financing that offered satisfactory payment to creditors through a court-approved bankruptcy plan and a capital structure that allowed the operator to focus on running the business. This entailed a 60-day close from term sheet execution.

• Crafted court-approved reorganization plan and supported negotiations with creditors’ committee

• Worked with operator to devise and execute post-closing sale-leaseback strategy that led to additional unit development