Citizens financing BWW purchases

SOUTHFIELD, Mich. – Citizens Financial Group Inc. last week announced a multimillion dollar financing deal with a Michigan-based holding company to acquire 18 Buffalo Wild Wings in Missouri, effectively becoming the largest franchisee of the chain.
Diversified Restaurant Holdings Inc. (DRH) entered into a $155 million financing deal with Citizens Bank, a subsidiary of Citizens Financial Group, which includes a $120 million loan, an unfunded $30 million line of credit and an additional unfunded $5 million revolver to support working capital needs, according to a press release. The deal goes toward refinancing existing debt and to fund the $54 million acquisition of 18 Buffalo Wild Wing restaurants in the St. Louis, Mo., area. The acquisition makes DRH the largest Buffalo Wild Wings franchisee.
“Citizens restaurant finance was able to restructure financing that helped us meet our goals, maintaining liquidity and access to capital for continued organic growth of our two concepts,” said David Burke, chief financial officer and treasurer of DRH, in a statement. “Citizens bankers are excellent financial partners who bring innovative ideas to the table, excel at execution and provide great services.”
DRH is the owner and operator of the restaurant and bar Bagger Dave’s Burger Tavern with several locations in Michigan and Indiana.
“Diversified Restaurant Holdings is an excellent client with a very solid business operation,” said David Farwell, head of franchise finance for Citizens Commercial Banking, in a statement. “The Citizens restaurant finance team is happy to be able to help DRH, a longtime client, achieve their strategic and financial goals.”
Citizens is serving as joint lead arranger and administrative agent for the transaction. BMO Capital Markets is serving as joint lead arranger and syndication agent, according to the release.

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