News

Trinity Capital's transaction roster includes Taco Bell franchisees

February 20, 2014

Trinity Capital, an investment banking firm, announced it completed more than 30 transactions valued at $2 billion in 2013.

"It was a watershed year for Trinity Capital as we passed important milestones with transactions, revenue, profitability and new client additions," Managing partner Kevin Burke said in a company news release. "During the year we completed 32 transactions for clients including mergers and acquisitions, capital raises, fairness opinions, valuations, franchise consulting, and systemwide franchise studies."

Among its transactions were:

• Trinity assisted Tacala LLC, one of the nation's largest franchisees in its divestiture of Gateway Bells, a 62 restaurant Taco Bell operator which was acquired by Bell American Group, the nation's largest franchisee.
• Early in 2013, Trinity capital assisted ES-O-EN Corp., a 40-unit Taco Bell franchisee with operations in Idaho, Oregon and Utah in connection with its $18 million senior debt refinancing and $15 million revolving line of credit for new store development and remodeling. The company's new annual debt service was 1/12th its prior annual obligation, significantly improving cash flow and liquidity for the Taco Bell operator.
• Trinity conducted a two-step transaction for longtime client Luihn Foods that bifurcated real estate assets from enterprise value and separately divested these entities to different buyers to maximize proceeds and capitalize on 2012 capital gains tax treatment, in spite of the fact that some of the assets were conveyed in 2013. This transaction accomplished the strategic, trust, and estate and tax objectives of the Luihn family, one of the largest Yum! Brands operators in the U.S.
• Burger Busters, an 83 restaurant Taco Bell operator in southeastern Virginia, and longtime Trinity client, completed an $80 million credit facility to refinance its existing debt and fund growth and expansion.

Burke said 2014 will continue to be challenging for the restaurant industry as guest visits continue to decline.

"But despite this, competitive brands continue to thrive at the expense of laggards through product innovation, clever customer strategies and effective promotion. Restaurant goers' tastes and preferences are rapidly changing under the noses of many concepts," he said. "Leading concepts are closely following their customers through traditional means and social media in order to avoid obsolescence."