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Boston Chicken Inc. Secures $30 Million Credit Facility

Strategic Insights

— 2 min read

Boston Chicken Inc.'s Philadelphia-based developer, Mid-Atlantic Restaurant Systems, L.P., has secured a significant $30 million multi-year senior credit facility with agent CoreStates Bank of Philadelphia. This financing will provide the necessary capital to complete Mid-Atlantic's development program, which aims to open a total of 118 stores by the end of 1997. The company currently employs 2,000 people in four states, but expects to provide jobs for more than 5,000 people by the end of 1997. The commitment by CoreStates Bank demonstrates confidence in Mid-Atlantic's store performance and the Boston Chicken concept, and will enable the company to complete its aggressive development goals.

Key Takeaways:

  • Mid-Atlantic Restaurant Systems, L.P. secured a $30 million multi-year senior credit facility with CoreStates Bank of Philadelphia.
  • The financing will be used to complete the company's development program, which aims to open 118 stores by the end of 1997.
  • Mid-Atlantic currently employs 2,000 people in four states, but expects to provide jobs for more than 5,000 people by the end of 1997.
  • The company became a franchisee of Boston Chicken in March 1994 and operates 41 stores in Pennsylvania, New Jersey, Delaware, and Maryland.
  • Mid-Atlantic acquired 84 Roy Roger units in the Philadelphia market and has converted 26 of them to Boston Chicken stores.
  • Boston Chicken Inc. operates and franchises food service stores that specialize in complete meals featuring rotisserie roasted chicken and fresh vegetables.
  • There are currently 550 Boston Chicken stores in 28 states and the District of Columbia.

Statistics:

  • $30 million: the amount of the multi-year senior credit facility secured by Mid-Atlantic Restaurant Systems, L.P.
  • 118: the total number of storesMid-Atlantic aims to open by the end of 1997.
  • 2,000: the number of people currently employed by Mid-Atlantic in four states.
  • 5,000: the estimated number of people Mid-Atlantic will provide jobs for by the end of 1997.
  • 41: the number of stores Mid-Atlantic operates in Pennsylvania, New Jersey, Delaware, and Maryland.
  • 84: the number of Roy Roger units acquired by Mid-Atlantic in the Philadelphia market.
  • 26: the number of Roy Roger units converted to Boston Chicken stores.
  • 550: the total number of Boston Chicken stores in 28 states and the District of Columbia.

Sources:

  • "Mid-Atlantic Restaurant Systems, L.P. Announces Closing of $30 Million Senior Credit Facility" (Business Wire, Jan. 25, 1995)
  • Boston Chicken Inc. press release (March 1994)
  • Boston Chicken Inc. company information (1995)

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