Pleasant Lake Likes What Del Taco Restaurants Inc (TACO) Is Cooking

The merger was announced by Levy Acquisition and Del Taco in March. As a first phase of the merger, the Levy family and a group of investors acquired $120 million worth of Del Taco common stock. Net proceeds from this investment helped repay $111.2 million of high-interest subordinated indebtedness. Upon closing of the merger, Del Taco repaid an additional $68.6 million of senior debt. With the nominal redemptions by Levy Acquisition shareholders as part of the merger, Levy Acquisition will acquire $60 million worth of Del Taco stock from legacy Del Taco shareholders for cash, instead of Levy Acquisition shares. This limits the dilution of Levy Acquisition shareholders to the maximum extent possible under the terms of the merger agreement, according to a statement by Del Taco.

Headquartered in Lake Forest, California, Del Taco was founded in 1964 by Ed Hackbarth and David Jameson. Together with franchises, Del Taco operates about 550 restaurants in 16 states. Del Taco Restaurants Inc (NASDAQ:TACO) is planning to expand into new markets, and wants to achieve a goal of 2,000 restaurants.

For its fiscal first quarter ended March 24, Del Taco posted a net loss of $4.9 million, versus a loss of $1.9 million a year earlier. The company was able to increase its total revenue by 8.9% on the year to $94.4 million. Revenue growth is attributed to the increase in company’s restaurant sales and franchise revenue, according to the company.

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