Restaurant company secures $97M credit facility
A local restaurant company has secured a $97-million credit facility to support its planned expansion.
Grand Rapids-based Meritage Hospitality Group said today it closed on the credit facility in a syndication led by City National Bank City.
The credit facility is expected to help Meritage save $1 million on interest each year, Meritage CEO Robert Schermer said.
The line of credit will also allow the company to embark on more renovations, restaurant development and Wendy’s acquisitions, Schermer said.
“We consider ourselves in the early stages of a major Wendy’s consolidation and investment cycle driven by acquisitions, restaurant renovations and new development,” Schermer said. “This new facility will greatly assist us in achieving continued profitable growth.”
Meritage Hospitality Group has 183 restaurants, mostly Wendy’s, in Florida, Georgia, North Carolina, South Carolina, Ohio, Oklahoma and Virginia. The company employs more than 6,300 people.
In addition to Wendy’s, Meritage also operates Twisted Rooster, Crooked Goose, Freighters and The Wheelhouse.
The company released a five-year growth plan earlier this year. Under the plan, it expects to add restaurants, as well as increase sales and earnings.