El Pollo Loco gets $45m in Freeman Spogli equity deal

Nation's Restaurant News,  Jan 7, 2008  

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IRVINE, CALIF. -- The private-equity firm Freeman Spogli & Co. has paid $45 million for an undisclosed stake in El Pollo Loco Inc., franchisor or operator of 389 flame-grilled-chicken restaurants.

El Pollo Loco said the funds would be used for the Irvine-based chain's "accelerated" national expansion and for general corporate purposes. El Pollo Loco operates 159 restaurants and is franchisor of 230 others in nine states.

The equity investment followed an announcement last month that the company's principal owner, Trimaran Capital Partners' Trimaran Fund II LLC, would issue a letter of credit on the chain's behalf, along with one issued by the chain itself, as collateral against a bond for $22 million in trademark-related damages El Pollo Loco was ordered to pay to the brand's Mexican founder.

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Los Angeles-based Freeman Spogli has invested in several restaurant companies during the past two decades, including Popeyes parent AFC Enterprises and CKE Restaurants, owner of the Hardee's and Carl's Jr. brands.

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