Uno Restaurant Holdings Corporation Announces Plan to Restructure Debt and Strengthen Balance Sheet

  • Recapitalization of balance sheet, via consensual agreement with majority of bondholders, will convert $142 million of senior secured notes into a controlling equity stake
  • Transaction to be accomplished through a "pre-arranged" Chapter 11 filing
  • New $52 million debtor-in-possession credit facility provides financial stability throughout the reorganization process
  • New capital structure will provide solid footing from which to grow the Uno family of brands

BOSTON // PRNewswire // -- Uno Restaurant Holdings Corporation ("Uno" or the "Company") announced today a restructuring which will recapitalize the Company and eliminate substantial debt through the conversion of $142 million of senior notes (the "Notes") into a controlling equity stake. The recapitalization will give Uno the resources to invest in its growth opportunities.

"The steps we've taken represent the culmination of many months of work on the part of the Company, its current owners and the Noteholder Group ("the Noteholder Group") made up of members comprising a majority of the Company's outstanding Notes," said Frank Guidara, President and CEO of Uno. "The Uno brand is strong; it's the balance sheet that needs fixing. Today's announcement marks the beginning of a new era for Uno wherein the Company will no longer be saddled with a burdensome debt load. Accordingly, we will now be able to leverage our operational strength which, combined with the substantially improved cash flow expected to result from our restructuring, will put us in a position to make long-term investments in the future of Uno's core businesses, Uno Chicago Grill restaurants, Uno Due Go, Uno Express and our Uno Foods Consumer Products Business."

In order to most effectively consummate this restructuring, Uno elected to file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, Southern District of New York (the "Court"). The Company's filing involves a pre-arranged reorganization transaction which includes a negotiated term sheet outlining the material terms of the restructuring plan and related plan support agreements from the Noteholder Group. In addition, subject to certain conditions, Uno has negotiated the terms under which they intend to seek court approval for a debtor-in-possession financing facility of $52,000,000 from its existing senior lender, Wells Fargo Capital Finance, Inc. and the Noteholder Group.

Mr. Guidara added, "With our anticipated debtor-in-possession financing and the support of a majority of the holders of our Notes, we commence this process on very solid financial footing and we expect to exit Chapter 11 in an expeditious manner. From the perspective of our customers, it will be business as usual in our restaurants and consumer products business and they will see the same commitment to quality and service that they have come to expect from the Uno brand. We are also working very closely with our employees, vendors and partners and we expect no disruption to our daily operations."

In conjunction with today's petition with the Court, the Company filed a variety of customary "first day" motions to support its employees and vendors during the reorganization process. The Company's filings also include a Summary of Principal Terms of Proposed Restructuring (the "Plan Term Sheet") which outlines the material elements of the Company's plan of reorganization as well as Restructuring Support Agreements supporting the Company's Plan Term Sheet executed by Twin Haven Capital Partners, LLC and Coliseum Capital Management, LLC which comprise the Noteholder Group and hold a majority of the Company's outstanding Notes.

"The Noteholder Group has spent several months working with us in crafting this solution to Uno's excessive debt burden," Frank Guidara stated. "Their support of our restructuring plan as well as their substantial participation in the expected debtor-in-possession credit facility, led by our long-standing lender Wells Fargo Capital Finance, Inc, is a clear indication of their strong sponsorship for our plan to move Uno into the future on a solid foundation. The fact is the lifting of our heavy debt burden has invigorated our team. Uno is alive and well and the best days are very much ahead."

About Uno Chicago Grill:

Based in Boston, Uno Restaurant Holdings Corporation includes 179 company-owned and franchised full-service Uno Chicago Grill units located in 28 states, the District of Columbia, Puerto Rico, South Korea, the United Arab Emirates, Honduras, Kuwait, and Saudi Arabia. The company also operates a fast casual concept called Uno Due Go®, a quick serve concept called Uno Express®, and a consumer foods division which supplies airlines, movie theaters, hotels, airports, travel plazas, schools and supermarkets with both frozen and refrigerated private-label foods and branded Uno products.

SOURCE Uno Restaurant Holdings, Corp

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