August 12, 2009 // Franchising.com // CHARLOTTE, NC – Bojangles' Restaurants, Inc. announced yesterday it has secured a $70 million refinancing arranged by its ownership group Falfurrias Capital Partners, allowing the restaurant group to substantially reduce its debt, lower its interest costs and support its ongoing expansion. A bank group led by Bank of America and Wells Fargo and including BB&T and Regions Bank provided the senior-term loan and credit facility for the refinancing.
As part of the transaction, Bojangles' significantly reduced its overall debt level, in part by repurchasing existing debt at a significant discount. In addition, Bojangles' received a lower interest rate that will result in substantial interest savings.
Charlotte-based Bojangles' is listed among the fastest growing restaurant companies nationally, and is ranked among North Carolina's largest privately held companies. Bojangles' posted strong growth with record earnings in 2008 and has continued to post record sales and earnings for the first six months of 2009. In 2008, Bojangles' reported systemwide sales totaling $608 million and expects 2009 system sales of $688 million. Bojangles' has 449 operating restaurants including 159 company operated restaurants and 290 franchise restaurants. Based on current approved projects, Bojangles' expects to open 42 restaurants in 2009 and to open its 500th restaurant in 2010.
"Our success is a result of the commitment we have made to operational excellence, sound business decisions, a strong franchise system and many committed Bojangles' team members," said Randy Kibler, President and CEO of Bojangles' Restaurants, Inc. "The refinancing positions us for even greater growth and the ability to increase our market share."
Throughout the remainder of 2009, as Bojangles' continues to expand in its home market of the Carolinas, the company will increase its presence with openings slated for Virginia, Florida, Georgia, Alabama and Tennessee.
"The Bojangles' experience is more popular now than ever. The concept has always had a cult-like following but more people are discovering the brand because of the quality and uniqueness of the food," Kibler added. "Our distinctive menu items including breakfast served all day in a fast, friendly manner has led Bojangles' to become a leading QSR chain across all categories, especially chicken."
New Bojangles' restaurants are built to the specs outlined in the chain's recently introduced prototype. Interior and exterior designs reflect a shift towards fast casual dining, blending quick service with a casual dining atmosphere.
Founded in 1977 in Charlotte, N.C, Bojangles' Restaurants, Inc. serves only the highest quality and most flavorful food to its loyal customers. Bojangles' kitchens prepare all their proprietary menu items from scratch with its own special blend of seasonings giving the food its unique Bojangles' flavor. The breakfast menu offers biscuit sandwiches such as Cajun Filets, seasoned sausage, steak, country ham, and eggs and cheese. With a core menu featuring breakfast served all day, Bojangles' seasoned chicken, fresh made-from-scratch buttermilk biscuits and fixin's such as Dirty Rice™, Cajun Pintos™, seasoned fries, and legendary iced tea steeped the old-fashioned way, Bojangles' has cornered the market on flavor. First franchised in 1978, Bojangles' boasts 449 total locations in 10 states. Bojangles' has 290 franchised and 159 company operated locations. By the end of 2009, Bojangles' will have more than 470 locations open.