Taco Bueno Restaurants has amended its existing credit agreement to increase financial flexibility and to pay a dividend to shareholders. Taco Bueno is a Mexican quick-service restaurant chain founded in 1967, which currently operates 161 Company-owned restaurants in Texas, Oklahoma, Kansas, and Missouri as well as 23 franchise stores. The company has been a portfolio company of affiliates of Palladium Equity Partners, LLC (together with its affiliates, “Palladium”), a private investment firm based in New York since August 2005.
Alex Ventosa, a Managing Director at Palladium, said, “Taco Bueno is a leading regional brand with a strong presence in core markets that offer tremendous opportunities for growth. Over the past six years, we have seen the Company use the strength of its brand and geographic positioning to capitalize on these opportunities, including the growth of the franchising business, new territory development and extension of menu offerings. The Company has delivered record-setting quarters in terms of revenues and cash flow in 2011, and its existing lenders have recognized this solid operating performance. This amendment allows the Company the financial flexibility to continue pursuing future opportunities for growth.”
Ed Lambert, CEO of Taco Bueno, said, “Over the past six years, Taco Bueno has maintained an excellent partnership with Palladium, which has enabled us to grow as a company while maintaining our rich heritage. Our customers have a strong passion for the brand and we will continue to provide the service and food quality that they expect. We look forward to continuing our partnership with Palladium as we pursue the market opportunities that lie ahead for Taco Bueno.”