Tampa fast-food chain has new owners in deal that cuts $225M of debt

A trio of investment partners has acquired majority ownership of Tampa-based Checkers Drive-in Restaurants, in a recapitalization deal that helps avoid further long-term debt issues. 

The company, in a June 20 statement, says the deal with its lenders reduces its “long-term funded debt from approximately $300 million to $75 million.” The company, with more than 800 locations under the Checkers and Rally’s brands, will also receive “additional $25 million in new debt financing commitments to fund store remodeling programs and other growth initiatives.”

Under the terms of the agreement, majority ownership of the company shifts to Checkers' senior lenders: Arbour Lane Capital Management LP; Garnett Station Partners; and Guggenheim Investments. The previous parent company, Oak Hill Partners, hired an adviser in January to explore refinancing options, according to Bloomberg News. Oak Hill acquired Checkers from Sentinel Capital Partners in 2017 for $525 million.