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GE Capital, Franchise Finance lends $25M to Mellow Mushroom franchisor
October 19, 2009
GE Capital, Franchise Finance recently closed a $25 million credit facility for Mellow Mushroom franchisor, Home-Grown Industries of Georgia Inc. (HGI). The financing consisted of a five-year senior term loan of $21 million and a $4 million revolving credit facility. Proceeds were used to complete a partner buyout, refinance the company's existing senior debt, as well as provide additional funds for new unit growth. Funding was provided through GE Capital, Franchise Finance's bank affiliate, GE Capital Financial Inc.
Headquartered in Atlanta, HGI is the franchisor of more than 100 Mellow Mushroom restaurants. In addition to Mellow Mushroom's franchised units, HGI owns and operates three Mellow Mushroom units in Austin, Texas, Panama City Beach, Fla., and Tuscaloosa, Ala.
Founded by three Georgia college students in 1974, Mellow Mushroom operates 92 of its 100 units in six southeastern states, including Georgia, South Carolina, North Carolina, Tennessee, Alabama and Florida.
The loan closed with the assistance of investment bank, Croft & Bender, which acted as sole advisor to HGI on both the partner buyout as well as for the financing provided by GE Capital.
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