Transaction Overview
Trinity Capital LLC recently completed the successful execution of a comprehensive financial restructuring for a multi-unit franchisee of El Pollo Loco. Until 2009, the franchisee had grown by 5-20% every year of operation since inception. However, the combination of significant development projects and the unexpected impact of the economic recession resulted in the Company’s inability to meet financial obligations and meet remodel requirements. Trinity was engaged to work with the Company’s creditors and equity partners toward a solution which not only facilitated economic solvency in the future but also allowed retention of equity by the owners.
Upon execution of the multi-party restructuring agreement, crafted and negotiated by Trinity, the Company was able to meet modified debt service requirements along with its franchisor obligations, as part of a comprehensive 10-year solution. In addition, Trinity’s plan ensured a means of funding both past and future re-image requirements to protect the brand’s image.
Transaction Testimonial
"We were faced with the dilemma of potentially loosing what we considered to be a fantastic operation of a great brand in one the Country’s best regions. When the economy turned on us, we faced an incredibly complicated balance sheet with various equity partners and large debt obligations from multiple providers, whose collateral was intertwined among all of our operations.
We were amazed at how quickly Trinity was able to accurately analyze our complicated situation and explain it in constructive was to the contingencies involved. Trinity worked with us to develop a sound plan, present it to all of our financial partners and convince them to implement. We feel fortunate to have made the decision to hire this talented group of professionals; they leveraged a tremendous amount of experience to our benefit, and achieved a highly successful outcome. They did a remarkable job and I’m excited that I can finally get back to running my company.
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- Owner
