Huddle House Gets $124M

DECATUR, GA-Washington, DC-based Allied Capital Corp. has committed $124.1 million to acquire a majority stake in locally based Huddle House Inc. The funding consists of a senior revolving credit facility, senior term loan, senior subordinated debt and a majority of the company’s common equity. At the close of the transaction on Dec. 21, it had funded $120.1 million of its commitment.

According to a statement from Allied, “the senior management of Huddle House also made a significant debt and equity investment in the company.” An Allied spokesman declined to tell GSR what proportion of the company it acquired, but says, “typically the management-stake in this type of private equity transaction is between 10% and 30%.”

Huddle House is the country’s fifth largest full-service restaurant chain, based on number of franchised units. It operates 400 family dining restaurants in 17 states throughout the Southeast and mid-Atlantic regions as well as in Texas and Missouri. Of those, 123 new units were opened within the past four years.