New Issue: El Pollo Loco raises $146 million in two-tranche bond sale

By Paul A. Harris

St. Louis, Nov. 15 - El Pollo Loco priced $164.342 million of high-yield bonds in a downsized, restructured two-part transaction on Tuesday, according to a market source. The sale generated about $146 million of proceeds.

At the operating company level, EPL Finance Corp. priced $125 million 11¾% eight-year senior unsecured notes (Caa1/CCC+) at 98.74 to yield 12%. The yield came on top of price talk that had been revised on Monday from 11¾% to 12%. The senior unsecured notes sale generated about $123.425 million of proceeds.

Meanwhile, EPL Intermediate Finance Corp. priced $39.342 million nine-year senior discount notes at 57.191 to yield 14½%, on top of price talk. The notes will have a 0% coupon until May 15, 2010, whereupon they will become cash-pay at 14½%. The discount notes sale generated $22.5 million of proceeds.

Merrill Lynch & Co. and Banc of America Securities LLC were joint bookrunners for the Rule 144A transactions.

Proceeds will be used to help fund acquisition of the company by Trimaran Capital Partners.

The issue was downsized from $150 million. The company's term loan B was upsized by $105 million.

The issuer is an Irvine, Calif.-based restaurant chain.

Company:	El Pollo Loco
Face amount:	$164.342 million
Proceeds:	$146 million (approximate)
Bookrunners:	Merrill Lynch & Co., Banc of America Securities LLC
Trade date:	Nov. 15
Settlement date:	Nov. 18
Distribution:	Rule 144A
Operating company issue
Issuer:	EPL Finance Corp.
Face amount:	$125 million
Proceeds:	$123.425 million (approximate)
Maturity:	Nov. 15, 2013
Security description:	Senior unsecured notes
Coupon:	11¾%
Price:	98.74
Yield:	12%
Spread:	740 basis points
Call features:	Callable after Nov. 15, 2009 at 106.0, 103.0, par on and after Nov. 15, 2011
Equity clawback:	Until Nov. 15, 2008 for 35% at 112.0
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Price talk:	12% (revised from 11¾%-12%)
Holding company issue
Issuer:	EPL Intermediate Finance Corp.
Face amount:	$39.342 million
Proceeds:	$22.5 million
Maturity:	Nov. 15, 2014
Security description:	Senior discount notes
Coupon:	0%, becomes cash pay at 14½% after May 15, 2010
Price:	57.191
Yield:	14½%
Spread:	991 basis points
Call features:	Callable after Nov. 15, 2009 at 109.0, 104.5, par on and after Nov. 15, 2011
Equity clawback:	Until Nov. 15, 2009 for up to 50% or 100% at 112.0, 113.25, 114.5, 114.5
Ratings:	To be determined
Price talk:	14½%

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