Checkers Drive-In Restaurants (Checkers) has reached a recapitalisation agreement with its lenders, which will help reduce its long-term funded debt from approximately $300m to $75m.

Under the agreement, Checkers, the owner of Checkers and Rally's restaurants, will also receive new $25m debt financing commitments to fund the store remodelling programme and other growth initiatives.

Checkers Drive-In Restaurants president and CEO Frances Allen said: “This is a positive development for the Company and our stakeholders.

“This refinancing significantly strengthens our balance sheet by, among other things, equitising our short-term debt maturities.

“The recapitalisation provides us with the financial flexibility we need to better position ourselves to invest in and continue growing our business.”

With this recapitalisation agreement, the majority of Checkers ownership will be shifted to its senior lenders, who were led by Arbour Lane Capital Management, Garnett Station Partners and Guggenheim Investments.

Allen added: "It is important to underscore how optimistic I am about the future of this Company. Our strong financial performance throughout the pandemic and through the first two quarters of 2023 while in the midst of inflationary pressures gives me great confidence that our strategic five-year plan is working and we can grow profitably and achieve long-term success.

“Our cash position is strong, our balance sheet no longer has the drag of legacy debt and we have the full commitment of our investors.”