On November 2, 2012, the company entered into a $35 million senior secured credit agreement with Summit Partners. Under the new credit facility, Round Table obtained a term loan in the aggregate principal amount of $32.5 million, which matures in five years. It also received the option of obtaining additional growth capital of up to $2.5 million. Concurrently, Round Table Pizza terminated its existing credit agreement with GE Capital and Prudential covering an outstanding principal amount of $28.8 million.
Round Table Pizza operates approximately 450 franchised and company-owned stores in the western U.S. with system revenues of approximately $400 million. Round Table Pizza is a 100% employee-owned company. The company was founded in 1959 and is based in Concord, CA (www.roundtablepizza.com).
“This new credit facility provides us the capital we need to execute our strategic business plan,” said Round Table’s Chief Executive Officer, Rob McCourt. “We were able to secure the new loan on competitive terms and creatively structure the credit facility to reduce our quarterly loan payments.”
Summit Partners provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $15 billion in capital and has provided equity, recapitalization, and management buyout financing to more than 350 companies across a range of industries. Summit Partners has offices in Boston, MA; Palo Alto, CA; London, UK; and Mumbai, India (www.summitpartners.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-12-12