Industry News | September 4, 2008

GE Capital Solutions, Franchise Finance Facilitates Fatz Cafe's Recapitalization

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GE Capital Solutions, Franchise Finance announced the completion of a $40 million deal facilitating the recapitalization of Fatz Cafe by Milestone Partners. 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, the chain includes 45 restaurants in five states in the Southeastern United States.

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.