Allied Capital Corp. said it has committed $124.1 million to complete the management buyout of Huddle House Inc., a franchisor of more than 400 value-priced, full-service family dining restaurants.
The company’s franchisees operate in 17 states throughout the Southeast and mid-Atlantic regions, as well as Texas and Missouri. Huddle House is the fifth-largest full-service restaurant chain in the U.S. by number of franchised units.
At closing, Allied Capital’s investment took the form of a senior revolving credit facility, a senior term loan, senior subordinated debt and a majority of the common equity. Allied Capital funded $120.1 million of its commitment at closing. The senior management of Huddle House also made a significant debt and equity investment in the company.
“Allied Capital’s investment in Huddle House is reflective of the company’s strong and stable franchise base, attractive free cash flow characteristics and proven management team,” said Mike Grisius, managing director of Allied Capital. Frank Izzo, principal of Allied Capital, added “we look forward to partnering with the management of Huddle House as they position the company for its next phase of growth.
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