C Squared Leads $73.5 Million Recapitalization and Shareholder Buyout for 108-Unit Wendy’s Operator, Carolina Restaurant Group






C Squared Leads $73.5 Million Recapitalization and Shareholder Buyout for 108-Unit Wendy's Operator, Carolina Restaurant Group

C Squared Advisors recently managed the closing on the equity raise, recapitalization, and shareholder buyout for Carolina Restaurant Group (CRG), a 108-unit Wendy’s operator based in Charlotte, North Carolina. It was a multi-faceted deal that CRG’s management team, led by Quint Graham and Gary Miller, and C Squared Partner Carty Davis, had been positioning for several years. The transaction involved the buyout of the long-time majority equity partners of CRG, an equity-raise with new shareholder, Stonehenge Capital Partners, and the recapitalization of CRG’s debt obligations with a lending group led by CIT Bank.

During the recapitalization process, CRG also closed on several small acquisition opportunities with financing provided by People’s Bank.

“Managing the recapitalization during the second half 2018, in what was a challenging environment for the restaurant industry, was difficult. Ultimately, CIT understood and recognized the opportunity with one of Wendy’s premier operators and, with the steadfast support of new equity partner Stonehenge Capital, completed the transaction in a timely manner,” said Davis.

Quint Graham, CRG CEO, indicated that, “Without C Squared’s guidance, the transaction would not have happened. We were able to go from having a minority ownership position to having significant equity control. C Squared was extremely valuable in bringing Stonehenge to the table and helping manage the franchisor approval process. I’ve retained Carty and C Squared’s services multiple times over the past ten years, but this deal was by far the most important. We had strong cohesion and execution from all stakeholders: Carty and the C Squared team, Tom Utgard and Keith Bishop at Stonehenge, Chris Capecci and the CIT team, and everyone’s legal counsel, as well. We couldn’t be happier.”

CRG’s longtime CFO, Gary Miller, added, “C Squared’s experience and expertise in the restaurant sector is extensive and enabled them to effectively structure our transaction while satisfying existing shareholders’ liquidity objectives. C Squared sourced and secured the appropriate capital providers that supported the buyout and our long-term corporate goals. We look forward to continuing our relationship with C Squared indefinitely.”

C Squared Advisors is an industry focused independent investment bank that provides financial and transaction advisory services to multi-unit owners in the restaurant and franchise industries. C Squared Advisors manages sell-side, buy-side, refranchising and recapitalization transactions by presenting comprehensive solutions and flexible alternatives while maximizing value for its clients.  For more information about C Squared Advisors, please visit our website at www.c2advisorygroup.com or contact a member of our team.