CHARLOTTE N.C. Falfurrias Capital Partners, a private-equity firm with a controlling interest in Bojangles’ Restaurants Inc., said Wednesday it has secured $70 million in refinancing for the 449-unit fast-food chicken chain.
The deal would allow Bojangles’ to reduce its debt and lower interest costs, Falfurrias said.
Abanking group led by Bank of America Corp and Wells Fargo & Co. provided the senior-term loan and credit facility for the refinancing.
As part of the transaction, Bojangles’ reduces its overall debt level, in part by repurchasing existing debt at a significant discount, Falfurrias said. In addition, the company received a lower interest rate.
Falfurrias was part of an investment group, including Carolina Panthers owner Jerry Richardson, that purchased a controlling interest in Bojangles' in 2007.
"Since we acquired controlling interest in Bojangles’ nearly two years ago, we have been extremely pleased with its continued strong performance during an uncertain economy," said Marc Oken, co-founder and managing partner of Falfurrias. "Now this favorable transaction, secured despite a difficult credit market, gives Bojangles’ the flexibility of using its strong cash position to further reduce its debt."
According to Falfurrias, sales were up 7 percent at Bojangles' for the first half of the year. The chain had systemwide sales of $608 million in 2008.
Charlotte-based Bojangles' has restaurants in 10 states.
Contact Elissa Elan at [email protected].