MONTREAL and MONCTON, Oct. 28 /CNW Telbec/ -- GE Capital and Imvescor Restaurant Group Inc. ("IRG") today jointly announced that GE Capital refinanced C$24.5 million of existing debt into a three-year term loan for IRG, a newly registered Canadian corporation resulting from the combination of Imvescor Inc. and other related entities with PDM Royalties Income Fund ("PDM"). This refinancing will be used by IRG to complete one of the requirements for the conversion of PDM to corporate status, and to facilitate restaurant development and further its expansion into new markets.
Based in New Brunswick, IRG holds a visible position in the family/mid-scale dining segment in Ontario, Quebec and Atlantic Canada through its ownership of trademarks and intellectual property for the Pizza Delight, Mikes, Scores and Bâton Rouge brands.
"We've received financing from GE Capital over the years. When we were planning for our business restructuring, we knew we could count on them again to offer their industry and structuring expertise while delivering a solution that would fit our needs and our new vision," said William R. Lane, Executive Vice President and Chief Financial Officer of IRG.
"This transaction represents GE Capital's dedication to the restaurant franchise industry. We have a division devoted to this industry with a team that has worked closely with Canadian franchises and franchisors since 2000," said Patrick Palerme, President and Chief Executive Officer of GE Capital in Canada.
"We are confident that Imvescor Restaurant Group's financing and new structure will add more room for maneuverability, staging the business for future growth, " said Ed Khediguian, Vice President, Franchise Finance, GE Capital in Canada. He added that "having a deeper understanding of Imvescor Restaurant Group's business model and industry has allowed us to identify a financial solution structured around cash flow that proved successful."
About GE Capital
GE Capital in Canada (gecapital.ca) is a leading provider of financial and fleet management solutions to businesses operating in a broad range of economic sectors, including construction, transportation, energy, manufacturing and retail. The business' customized solutions include leases, asset based working capital and term financing, cash flow financing, corporate aircraft, franchise and fleet financing as well as financial solutions and services to equipment manufacturers, operators, distributors, dealers and their end users. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit the company's Web site at ge.com.
About Imvescor Restaurant Group
Imvescor Restaurant Group is a franchising company in the food services business that indirectly owns, through its subsidiary PDM Royalties Limited Partnership, the trademarks and intellectual property for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands. Pizza Delight(R) operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Baton Rouge(R) operates in the Province of Quebec and Ontario in the casual dining segment. The shares of IRG are traded on the Toronto Stock Exchange under the stock symbol IRG.