Koning Enterprises

A 77-unit operator of Pizza Hut restaurants in South Florida.

Engagement Goals

Brookwood advised Koning on a successful refinancing to accommodate the Company’s growth plan.

Engagement Process and Outcomes

Situation – In April 2005 management at Koning decided to refinance and restructure the Company to allow for growth in its business plan. The Company was overleveraged with senior debt and sought financing alternatives.

Nature of the Assignment – Brookwood was engaged to negotiate the repayment of the senior debt at less than par value. The Company sought Brookwood’s services in facilitating negotiations for the redemption of the equity owned by a group of original minority investors. The engagement also included raising new senior and junior capital for the Company.

The Result – The senior lender agreed to a discount of nearly 50%, enabling the Company to gain flexibility in its capital structure. The minority investors’ ownership stake was redeemed at a nominal price. Brookwood secured new senior and subordinated debt for the Company at attractive terms with GE Franchise Finance and Banyan Mezzanine Fund, respectively.