Checkers Drive-In Restaurants, Inc. (Nasdaq: CHKR) announced June 16 that it has completed its previously announced debt restructuring and retired the $39.5 million balance, including interest, of its 9 7/8 percent senior notes as scheduled on June 15, 2000. The senior notes were issued by Rally's Hamburgers, Inc., in 1993 in connection with a $85 million bond financing transaction. The company used proceeds derived from its recent market sales and approximately $35,000,000 borrowed from Textron Financial Corporation pursuant to a credit facility that also funded today to repay the debt. Under the terms of the credit facility, the company is required to provide certain collateral to secure the loan within 60 days to avoid additional costs. The company expects to use leasehold mortgages and other assets related to its company-operated restaurants to provide the collateral. Citicorp Franchise Advisory Services served as advisor for the credit facility transaction.
We still have work to do to secure collateral for the loan and complete other pending market sales to further reduce our debt but we have a seasoned team in place to finish the job,"said Daniel Dorsch, president and chief executive officer. "It is a big step for this company to put this bond debt behind us.''
Checkers Drive-In Restaurants, Inc. and its franchisees own approximately 436 Checkers operating primarily in the Southeastern United States and approximately 462 Rally's operating primarily in the Midwestern United States.