GE Capital Solutions, Franchise Finance completes $40 million deal
SCOTTSDALE, Ariz.--03 September 2008-- GE Capital Solutions, Franchise Finance completes a $40 million deal facilitating the recapitalization of Fatz Cafe by Milestone Partners. The deal demonstrates the commitment of GE Capital Solutions, Franchise Finance to companies with consistent performance and potential for increased revenue. GE Capital Solutions, Franchise Finance provides financing comprised of a $35 million term loan to refinance debt and a $5 million revolver to build new units to ensure the continued growth of the company.
"This deal illustrates the ability of GE Capital Solutions, Franchise Finance to put money to work during a challenging time for our economy," says Brian Frank, vice president, GE Capital Solutions, Franchise Finance. "We were able to set up a flexible structure for Milestone Partners that will help Fatz Cafe grow, compete, and prosper."
This deal marks the first transaction between GE Capital Solutions, Franchise Finance and Milestone Partners.
"Our extensive communication with Fatz Cafe spanning several months creates a deal that exactly fits their needs," says Jeff Knipe, senior vice president, GE Capital Solutions, Franchise Finance. "The company is a solid investment which continues to perform, and we demonstrate our commitment through our debt financing."
Fatz Cafe is a privately held, casual restaurant chain. Founded in 1988 on the principle that every customer is a regular, the chain includes 45 restaurants in five states in the Southeastern United States.
"GE Capital Solutions, Franchise Finance is a valuable business resource helping us capitalize on this opportunity to grow," says Geoffrey Veale, vice president, Milestone Partners. "Their flexibility and extensive knowledge of the restaurant business helps us to move forward with the recapitalization of Fatz Cafe and our long-term vision for growth."
Milestone Partners provides capital to privately-owned businesses and their shareholders supporting ownership transitions, management buyouts, recapitalizations, and growth. Milestone focuses on partnering with management teams to acquire controlling interests in companies with values of up to $100 million, based on a core understanding of the opportunities and challenges facing companies in the lower middle market.
GE Capital Solutions, Franchise Finance is a leading lender serving customers in the restaurant, hospitality, and branded beverage industries. It provides financing to help franchisees and franchisors grow, compete, and prosper. It offers access to capital with a diverse array of flexible financing options, including funds for purchasing real estate or equipment, new construction or remodels, acquisitions, or refinancing.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 30 years of experience and $13 billion in served assets, we serve more than 5,000 customers and more than 22,000 property locations, primarily in the restaurant, hospitality, and branded beverage industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).
GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $100 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.
GE (NYSE: GE) is Imagination at Work --- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Christine Roe
GE Capital Solutions
[email protected]
1-480-563-6260