Desert de Oro Foods and its affiliated operating entities, collectively, “DDO", is a Kingman, Arizona based YUM! Brands franchisee owned and operated by long-time franchisees Mark Peterson and Krystal Burge. DDO, along with affiliated real estate holding companies Zee Properties, LLC and SK&M Investments, Inc. have recapitalized their balance sheets and procured long term enterprise and real estate financing from a consortium of lenders.
The financings included senior secured term loans, development lines of credit, and revolving lines of credit which were used to refinance the company’s existing debt and provide funding for remodels and development of new restaurants.
The financing optimized the company’s capital structure providing:- significantly increased debt capacity,
- dramatically increased cash flow,
- enlarged development lines of credit,
- a flexible revolving line of credit,
- 25-year amortization on the real estate term loans, and
- separate loan covenants for the operating and the real estate companies
DDO, founded in 1981 to develop one Taco Bell restaurant, is now one of the 15 largest YUM! Brands franchisees in the United States. The company now owns and operates a total of 234 restaurants, including 139 Taco Bells, 58 Pizza Huts, five KFCs, 18 Taco Bell/KFC co-branded restaurants and 14 multi-branded restaurants. The real estate entities Zee Properties and SK&M own the real estate underlying 75 of the restaurants.
