GE Capital, Franchise Finance closed a $25m credit facility for the Atlanta, Georgia-based Home-Grown Industries of Georgia, Inc. (HGI), the franchisor of more than 100 Mellow Mushroom restaurants.
The financing consisted of a five-year senior term loan of $21m and a $4m revolving credit facility.
The funds will be used to complete a partner buyout, refinance the company’s existing senior debt and provide additional funds for new unit growth.
In addition to Mellow Mushroom’s franchised units, HGI owns and operates three Mellow Mushroom units in Austin, Texas, Panama City Beach, Fla., and Tuscaloosa, Ala.
Founded by three Georgia college students in 1974, Mellow Mushroom currently operates 92 of its 100 units in six southeastern states, including Georgia, South Carolina, North Carolina, Tennessee, Alabama, and Florida.