El Pollo Loco buys $109.75 million 9¼% notes, $70 million 12½% notes in tender

New York, Nov. 18 - El Pollo Loco, Inc. said it has completed its tender for its $110 million of 9¼% senior secured notes due 2009, buying $109.75 million of the securities, while parent EPL Intermediate, Inc. also completed its offer, buying all its $70 million 12½% senior discount notes due 2010.

The tenders expired at 8 a.m. ET on Nov. 18 after being extended from 8 a.m. ET on Nov. 16 to allow completion of the acquisition of the company. The expiration was previously extended from Nov. 9.

At the previous announcement on Nov. 16, El Pollo Loco said it had set pricing in its tender for its 9¼% notes.

The company is paying $1,088.37 per $1,000 principal amount including a $50.00 per $1,000 principal amount consent payment that will only be paid to holders who tendered before the consent deadline.

By Nov. 15, investors had tendered 97.95% of the notes.

Pricing was fixed at 2 p.m. ET on Nov. 16.

On Oct. 25, the companies said they had received the necessary consents to amend the notes. The solicitation was for amendments that would eliminate all restrictive covenants and events of default in the notes' indentures.

The two Irvine, Calif.-based companies announced the tender offer and consent solicitation on Oct. 13 as part of a stock purchase agreement. As previously reported, Trimaran Capital Partners LLC entered a definitive agreement to purchase El Pollo Loco from American Securities Capital Partners LP for an undisclosed sum.

For the 9¼% notes, the company is paying an amount calculated based on the present value of scheduled payments on the notes, discounted using the 3% Treasury due Dec. 31, 2006 and 50 basis points.

For the 12½% notes, EPL said it was paying 112.5% of the accreted value of the notes as of 30 days following the settlement date and $2.50 per $1,000 principal amount at maturity of notes. With a settlement date of Nov. 10, EPL would pay $759.83 per $1,000 principal amount of notes at maturity.

Those who tender their notes before the consent deadline will receive the $50.00 per $1,000 principal amount consent payment, which is included in the payout.

The offer is conditioned upon the receipt of tenders from a majority of noteholders and sufficient financing.

Merrill Lynch & Co. is dealer manager and solicitation agent (call collect 212 449-4914 or 888 ML4-TNDR). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 387-1500).

El Pollo Loco is a quick-service restaurant chain that was founded in Guasave, Mexico.

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