DENVER — Quiznos has completed its financial restructuring, eliminating one-third, or $300 million, of its outstanding debt.
The out-of-court restructuring also provides for an infusion of $150 million in new equity from Avenue Capital Group.
“Improving our balance sheet and putting our capital structure issues behind us are major steps forward to strengthening the Quiznos brand and our customer experience,” said Greg MacDonald, chief executive officer. “We look forward to working alongside the Avenue Capital Group team and appreciate the support of all of our lenders during this restructuring process. Along with our dedicated franchise owners and employees, we can now focus primarily on the customer experience and our fresh, high-quality products. This is an exciting time for all of us here.”
Avenue Capital Group has become the majority owner of the company through a $150 million equity infusion and conversion of its debt to equity after the closing of an exchange offer Quiznos launched on Dec. 23.
Quiznos is a fast casual restaurant franchise that specializes in offering toasted subs. It is the second-largest submarine sandwich shop chain in North America, after Subway.
There are more than 4,000 Quiznos shops located in the United States, 300 in Canada, and 100 more across the world.