Investee Company – A-Z Restaurants Ltd (UK)
Investee Company Business Type – Owner of a group of high quality restaurants
Type of Financing – Expansion
Equity Providers – Close Brothers Growth Capital
Equity Leader (Individual) – Bill Crossan
Debt Providers – Close Brothers Growth Capital
Debt Type – Medium term loan (£2.5 million), mezzanine for draw down (£1 million)
Debt Leader (Individual) – N/A
Equity Amount – £1.5 million
Total Deal Value – £5 million
Other Advisors – To A-Z: Legal – Ashurst, Colombotti Brown (Greg Kaye), Financial – Solomon Hare, Bristol (Nick Reeve). To CBGC:Legal – Osborne Clark (Hugh Jones, Linda Williams), Financial – Robson Rhodes London (Rachel Kemsley)
Comments – A-Z restaurants Ltd, owner of restaurants such as L’Oranger, Zafferano’s, Aubergine and Memories of China, has received expansion financing from Close Brothers Growth Capital (CBGC) worth £5 million.
The package consists of a £2.5 million medium term loan to refinance excisting facilities, £1.5 million in Convertible Loan Stock to provide further development capital and £1 million mezzanine financing for draw down.
The group, which currently operates 11 restaurants, is opening two new restaurants in the next four months and has plans for another eight in the next two years. The restaurants, which are aimed at the top to middle end of the market, offer French, Italian and Chinese cuisine.
Bill Crossan, who led this deal for CBGC and will join the board of A-Z, said: “This is a perfect investment for us. We are backing London’s most up and coming restaurant group and there are great opportunities for growth.”