John’s Incredible Pizza Company Inc. has recapitalized debt in a $30 million deal that includes investments from debt capital firm Praesidian Capital, along with Brookside Mezzanine Partners and Kemper Corp.
Under the deal, Praesidian invested $17.4 million in first lien debt, representing 58 percent of the transaction. The balance was shared between Brookside and Kemper.
John Parlet, John’s chief executive and founder, said there was no equity involved in the deal, and he has retained ownership.
Praesidian Capital founder Jason Drattell said in a statement: “We believe John’s has the right mix of operating performance and brand uniqueness to support growth in the western states, and we look forward to working with John Parlet and his team as the company grows.”
The recapitalization offers the 10-unit chain the right financial structure for future growth, Parlet said.
“Our goal is to build a couple of stores per year,” said Parlet. “We’ve been a bit challenged by locations.”
Based in Rancho Santa Margarita, Calif., John’s Incredible Pizza is known for its buffet offerings, including pizza, salad, pasta and desserts. The restaurants also feature a “Fun World” entertainment area with games and activities like bowling and bumper cars.
With units averaging around 47,000-square feet — but reaching 60,000-square-feet in some cases — it can be challenging to find adequate space, Parlet said.
The company is currently looking at sites in both Southern and Northern California with the goal of opening three or four more units in the state before moving into other parts of the West. John’s currently operates in California and Oregon.
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