News

Quiznos completes debt restructuring

January 25, 2012

Quiznos has successfully completed its previously announced financial restructuring on an out-of-court basis.

The agreement eliminates one-third – or approximately $300 million – of the company's outstanding debt, and provides an infusion of $150 million in new equity from Avenue Capital Group, a global investment firm, to position Quiznos for future growth.

"Improving our balance sheet and putting our capital structure issues behind us are major steps forward to strengthening the Quiznos brand and our customer experience," said Greg MacDonald, Quiznos CEO. "We look forward to working alongside the Avenue Capital Group team and appreciate the support of all of our lenders during this restructuring process."

MacDonald added that the company and its franchisees can now better focus on customer experience and the product line.

Following the successful closing of an exchange offer launched by Quiznos on Dec. 23, Avenue Capital Group has become the majority owner of the company through its $150 million equity infusion and the conversion of its debt to equity.

One hundred percent of the aggregate principal amount of the first- and second-lien loans were tendered in the exchange offer.

"We are excited to be part of the Quiznos team and look forward to partnering with management in the weeks and months ahead," said Marc Lasry, CEO of Avenue Capital Group.

Former equity owners Consumer Capital Partners facilitated the restructuring process and provided certain concessions to allow the restructuring to be completed out of court.

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