SYRACUSE N.Y. Citing more favorable interest rates and needed capital to fund expansion, Carrols Restaurant Group Inc. said Monday it entered into a new $185 million credit facility.
The funds will be used to repay all outstanding debt under the company's former credit facility and to "provide [Carrols] with the flexibility to fund the capital needs of [its] growing business," the company said in a statement.
Carrols is the largest Burger King franchisee and also operates and franchises the Pollo Tropical and Taco Cabana chains. Systemwide units total 577 restaurants.
The new credit arrangement includes a $65 million five-year revolving credit facility and $120 million term loan borrowings that mature in six years. Wachovia Capital Markets LLC and Banc of America Securities LLC acted as joint arrangers and book managers.