Fratelli Fresh lenders extend $228m debt lifeline

afr.com:

Quadrant Private Equity’s Pacific Hunter hospitality empire has been handed a lifeline after its two lenders extended the debt out two years and provided the group with access to additional facilities.

Street Talk reported in June that there was some movement among the lenders, with Korea’s Shinhan Bank considering exit options around its exposure to Pacific Concepts, the part of the business which houses Fratelli Fresh, El Camino Cantina, The Bavarian, Munich Brahaus and The Argyle.

Shinhan Bank owns roughly half of the $228 million debt stack for Pacific Concepts, with Metrics Credit Partners holding the remainder. ANZ Banking Group, which provided funding to the company in 2019, left the debt stack about 18 months ago with Metrics absorbing its position.

Pacific Hunter operates The Bavarian restaurants among other major chains. Sahlan Hayes

Now, sources say Quadrant has ruled off a refinancing deal that will mean Shinhan and Metrics stay as they are in the debt stack – and provide an additional $20 million of funding. That should give the hospitality group some breathing room as it moves to cut its losses and shore up its financial position.

When Shinhan Bank and ANZ lent to the company four years ago, Quadrant was talking about opening 400 The Bavarian-branded restaurants in the United States. There are currently 19 The Bavarian restaurants, 13 El Camino Cantina outlets and five Fratelli Fresh stores. Quadrant built the business by acquiring Rockpool Group from chef Neil Perry in 2016 and merging it with Urban Purveyor Group, which it bought for $175 million in 2015.

Pacific Concepts is the part of the business that owns casual dining venues, while the related Hunter Street Hospitality is the operator of Rockpool Bar