LOS ANGELES Grill Concepts Inc., which is based in Los Angeles, said it raised $14.1 million before deductions in a private offering to fund the expansion of the company’s Daily Grill and Grill on the Alley restaurant concepts.
Some of the proceeds would be used to pay off funded debt, including the buyout last year of Hotel Restaurant Properties, a group that helps find hotel locations for restaurants. Proceeds also would go toward general working capital, said Philip Gay, president and chief executive officer.
Two million Grill Concept shares were sold by the company and 100,000 shares by cofounder and former chief executive Robert Spivak for $7 per share.
The company recently signed leases and a management agreement for new Daily Grill units in Austin and North Dallas, Texas, as well as Phoenix, Fresno, Calif., Boston, and Tulsa, Okla. At least four new restaurants are expected to open in 2007.
Grill Concepts owns, manages and licenses five Grill on the Alley restaurants and 21 Daily Grills.