Del Taco Holdings announced the completion of a debt refinance transaction. 

The transaction, led by GE Capital, Franchise Finance, features new senior credit facilities, which include a $175 million term loan and a $40 million revolving line of credit.

Net proceeds were used to refinance the company’s existing senior credit facility and for a partial redemption of its senior subordinated debt.

“This transaction results in a significantly lower effective interest rate that enhances our capital structure, allowing for increased flexibility as we continue to invest in the business through growth in new and existing markets,” says Steven Brake, executive vice president and chief financial officer for Del Taco Holdings.

In 2012, Del Taco had systemwide sales of $608 million and operates 298 company-owned units, with 253 franchised locations in 17 states.

At Del Taco, all menu items are prepared to order using fresh ingredients, including Cheddar cheese grated from 40-pound blocks, handmade pico de gallo salsa, lard-free beans slow cooked from scratch, and marinated chicken grilled in the restaurant.

The menu includes Mexican offerings of tacos, burritos, quesadillas, and nachos, as well as American favorites like hamburgers, crinkle-cut fries, and shakes.

Del Taco also serves breakfast featuring a full line of breakfast burritos.