Close Brothers Growth Capital ("CBGC"), leading mid-market provider of combined debt and equity funding, and A-Z Restaurants Ltd ("A-Z" or "the Group"), the Group that owns high-quality restaurants such as L'Oranger, Zafferano's, Aubergine and Memories of China, announce today a £5 million expansion financing deal.
A-Z recently opened Spiga Chelsea and is scheduled to open two new restaurants over the next four months, Prezzemolo in Wandsworth and Memories of China in Chelsea. These sites have already been acquired and are currently being refurbished. The Group also plans to open eight new restaurants within the next 2 years, almost doubling its size.
Giuliano Lotto, Managing Director of the Group said,
"We are very pleased to have established this relationship with Close Brothers Growth Capital. This deal will enable us to expand and to build the UK's premier group of quality restaurant brands."
The innovative funding package provided by CBGC incorporates a hybrid debt equity product which will allow the Group to accelerate new restaurant openings and take advantage of opportunities to acquire new sites and restaurant businesses as they arise. The financing, led by CBGC Managing Director Bill Crossan, provides a medium term loan of £2.5m to refinance existing facilities and £1.5m in Convertible Loan Stock to provide further development capital for the fast-growing restaurant Group.
Bill Crossan of CBGC, who joins the board of A-Z as a non-executive director, commented on the transaction:
"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. This deal is typical of the mid cap transaction we specialise in."
About A-Z Restaurants Ltd.
A-Z currently operates eleven restaurants around London targeted at the top and middle of the restaurant market and offering French, Italian and Chinese cuisine. Its signature restaurants, Aubergine, L'Oranger and Zafferano are widely recognised to be among the very best in London and each has been awarded a Michelin star. Other establishments include the two high/mid-end Memories of China restaurants (Belgravia and Kensington) and two Spiga-branded Italian restaurants.
A-Z, which has a staff of over 350, is led by Managing Director Giuliano Lotto. Four new restaurants have opened during the last year; Rosmarino in St John's Wood, Teca in Mayfair, Alloro in Mayfair and Spiga in Chelsea.
A-Z is listed as one of the top two restaurant groups in London in the forthcoming Harden's 2001 Restaurant Guide, ahead of well-known names such as Marco Pierre White and Sir Terence Conran. The Group is therefore recognised as the best "large" group in London (the other top group was Nigel Platts-Martin who operates a smaller number of establishments). The Harden's Guide is based on customer satisfaction ratings on food quality, service and ambience on all restaurants within the Group and the favourable ratings demonstrate the consistently high standards achieved by A-Z.
About CBGC
Close Brothers Growth Capital is a leading mid-market provider of combined debt and equity funding, is part of Close Brothers Group, the listed UK merchant bank and specialises in development capital, management buy-outs, management buyins, refinancings and acquisition funding.
Headed by Managing Director, Bill Crossan, CBGC will invest in small and medium sized UK businesses by way of a tailor made product, typically a hybrid debt and equity instrument, incorporating a senior loan with equity options.
Close Brothers Growth Capital is regulated by IMRO.
Enquiries:
Giuliano Lotto A-Z Tel: 0207 259 2044
Bill Crossan CBGC Tel: 0207 426 4000
Fergus Wylie
Caroline Villiers Cubitt Consulting Tel: 0207 367 5100
Advisers:
To A-Z
Legal - Amhurst, Colombotti Brown (Greg Kaye)
Financial - Solomon Hare, Bristol (Nick Reeve)
To CBGC
Financial - Robson Rhodes London (Rachel Kemsley)
Legal - Osborne Clarke (Hugh Jones, Linda Williams)
