Checkers to get new debt financing to back LBO by Wellspring

By Sara Rosenberg

New York, Feb. 17 - Checkers Drive-In Restaurants Inc. plans to acquire new debt financing to help support Wellspring Capital Management LLC's leveraged buyout of the company, according to a news release.

Guggenheim Corporate Funding LLC will provide the financing.

Under the purchase agreement, Taxi Holdings Corp., an affiliate of Wellspring, will acquire Checkers for $15.00 per share in cash. The total transaction value is about $188 million, including the assumption of Checkers' debt.

The acquisition is expected to close in the second quarter, subject to customary conditions and regulatory approvals and the approval of holders of a majority of Checkers' outstanding shares.

Checkers is a Tampa, Fla.-based operator and franchiser of restaurants under the names of Checkers and Rally's Hamburgers.

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