El Pollo Loco to sell $120 million secured notes Thursday via Jefferies

By Paul A. Harris

St. Louis, May 13 - El Pollo Loco, Inc. plans to price a $120 million offering of senior secured notes due 2012 on Thursday, according to an informed source.

Jefferies & Co. is the bookrunner for the Rule 144A/Regulation S deal.

The notes will become callable at a premium in February 2011, and will feature a 35% equity clawback.

They will be El Pollo Loco, Inc.'s second-priority senior secured obligations.

The notes will be fully and unconditionally guaranteed by EPL Intermediate, Inc. and any future domestic restricted subsidiaries of El Pollo Loco, Inc. The notes and the related note guarantees will be

secured by a second-priority lien on substantially all of El Pollo Loco, Inc.'s and the guarantors' assets, other than certain excluded assets, which will also secure El Pollo Loco, Inc.'s new revolver on a first-priority basis.

Proceeds will be used to repay bank debt and the senior secured notes due 2009, with the balance, if any, to be used for general corporate purposes.

The prospective issuer is a fast-food restaurant operator based in Irvine, Calif.

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