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Cadence Bank Provides $9MM Credit Line to Good Times Restaurants

May 09, 2016, 07:46 AM
Filed Under: Restaurant
Related: Cadence Bank

Good Times Restaurants Inc., operator of Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high quality, all natural products and of Bad Daddy’s Burger Bar, a full service, upscale concept, announced that it has received a senior debt revolving line of credit commitment from Cadence Bank for $9 million, subject to completion of definitive loan documents.

Jim Zielke, Chief Financial Officer, said, “We have been in discussions with a few different lenders to be a resource for a senior debt facility that can be expanded as we continue to accelerate our growth in 2017 and 2018. We are thrilled to be working with Cadence Bank, as they have significant experience in restaurant lending and have been very flexible based on our projected capital needs. We believe the $9 million facility, together with our existing cash and projected internally generated cash flow, will provide sufficient capital for us to meet our fiscal 2017 growth goals and capital expenditure needs for both brands while maintaining a fairly conservative level of debt in our total capital structure. As we continue to execute on our growth plan, Cadence has the capacity to grow with us, providing very attractively priced debt capital.”

The company said that annualized sales for the five new Bad Daddy’s opened this year are averaging at its $2.5 million annual target, laying the foundation for further acceleration of growth in fiscal 2017.

Good Times Restaurants Inc.operates Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants located primarily in Colorado, in its wholly owned subsidiary, Good Times Drive Thru Inc. Good Times provides a menu of high quality all natural hamburgers, 100% all natural chicken tenderloins, fresh frozen custard, natural cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises a total of 37 restaurants.

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