Consumer
TGI Fridays Mulls Options to Repay Franchise-Backed Debt
- The restaurant chain has been working with Guggenheim Partners
- It has considered a new private loan to refinance debt
A TGI Fridays restaurant in Levittown, New York.
Photographer: Jimin Kim/SOPA Images/Sipa/AP PhotoTGI Fridays is working with Guggenheim Partners to explore ways to address its debt as the restaurant chain contends with weakening sales, according to people with knowledge of the matter.
Among the options, the company has considered a new private loan that would refinance its $375 million asset-backed bonds, said the people who asked not to be identified discussing a private matter. The bonds were structured as a whole-business securitization, a type of transaction in which a company effectively pledges all its assets in exchange for cheap financing.