Checkers Drive-In Restaurants, Inc. (Nasdaq: CHKR) announced June 7 that it has received a lending commitment from Textron Financial Corporation for a $40 million credit facility. The credit facility transaction, which is subject to final negotiation and documentation, is expected to close by June 15, 2000. The Company plans to use some portion of the credit facility, along with proceeds from previously announced market sales, to retire its 9-7/8 percent senior notes that mature on June 15, 2000. Citicorp Franchise Advisory Services served as advisor for the credit facility transaction.
Daniel J. Dorsch, President and Chief Executive Officer commented, "This credit facility ensures that we will be able to pay off our bonds at maturity and gives us additional time to close our previously announced market sale transactions. I hope to repay the majority of the borrowings on the credit facility with the proceeds from market sales which should leave the Company with a strong balance sheet.'' Dorsch continued, "I am very much looking forward to getting the market sales and debt restructuring behind us so we can continue to focus on improving restaurant operations and strengthening the franchise system.''
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