El Pollo Loco Inc. announced today that it intends to pay in full the Mandatory Principal Redemption Amount of its 14.5 percent Senior Discount Notes due on May 15.
The Costa Mesa-based chain was reportedly in danger of defaulting on the $11 million loan payments, as well as the $14 million interest payment, due in June.
Funds to pay the amount will be provided through an equity infusion from its parent company, Chicken Acquisition Corp. The commitment is providing optimism for the 400-unit chain, which has struggled of late.
For 2010, EPL Intermediate Inc., parent company of El Pollo Loco, experienced a 2.3 percent drop in operating revenue from the same period in 2009.
"As the economy continues to show signs of recovery and our business stabilizes, we are energized by the momentum underway as we align our entire system around a brand revitalization platform that is focused on quality, service and cleanliness," said Steve Sather, El Pollo Loco president and CEO.
To execute this objective, the chain will focus on core menu items anchored by its chicken dishes. The company also recently expanded its side dish menu with three new items, flame-grilled corn, sweet corn cake and sweet potato fries.
Additionally, El Pollo Loco will rely on advertising messaging led by new AOR goodness Mfg., and will continue a systemwide restaurant redesign and remodel program.
