Tue Jul 6, 2021 3:11 pm Financial Covenants Analysis


In an announcement made on July 1, 2021, Fiesta Restaurant Group has agreed to sell their Taco Cabana business to Yadav Enterprises affiliate for $85M. The proceeds of this sale, which is expected to close in Q3 2021, will mainly be used to fully repay Fiesta Restaurant Group’s outstanding direct term loan from Fortress which was entered into in November of 2020. Yadav Enterprises operates more than 300 franchises under a variety of brands including Jack in the Box, Denny’s and TGI Friday’s. In terms of liquidity for Fiesta Restaurant Group, the company has a cash balance approximately $67.6M, plus the company’s board of directors will be looking for additional strategies to increase shareholder value. Read our Americas Covenants team’s full analysis of the decision and reasoning for Fiesta Restaurant Group to sell Taco Cabana as well as our analysis of the covenant implications for the sale here:  https://reorg.com/update-1-fiesta-restaurant-group-agrees-to-sell-taco-cabana-business-to-yadav-enterprises-affiliate-for-85m-sale-proceeds-to-fully-repay-outstanding-direct-term-loan-from-fortress-entered-into/



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