TGI Fridays Pays Back Bonds With Kraft Heinz Licensing Deal
- The restaurant chain still has about $150 million in ABS debt
- The firm had previously tapped Guggenheim to explore options
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Restaurant chain TGI Fridays Inc. has paid back about half of its existing asset backed bonds after selling a licensing business to Kraft Heinz Co., according to a report by S&P Global Ratings.
The company struck a deal with the food products firm earlier this week, which allowed Kraft Heinz to continue selling TGI Fridays food products and control the license. The proceeds of the sale were used to pay down $137 million of the dining chain’s whole business securitization, a type of transaction in which a company effectively pledges most of its assets in exchange for cheap financing.