Boston Chicken Inc. to convert loan into majority stake in New York-based area developer.GOLDEN, Colo.--(BUSINESS WIRE)--March 4, 1997--Boston Chicken, Inc. (BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International ) (NASDAQ-NMS: BOST BOST Boston National Historic Park (US National Park Service) BOST Built Off-Chip Self Test ) today announced plans to convert its loan to BC New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , L.L.C. into a majority equity interest in the New York-based area developer of Boston Market Boston Market (known before 1995 as Boston Chicken), headquartered in Golden, Colorado, is a chain of American fast-food restaurants. Founded in December 1985 in Newton, Massachusetts, the chain grew rapidly in the early and mid-1990s, filed bankruptcy in the late 1990s, and (R) stores. The transaction, expected to close in the next several weeks, will increase BCI's company-store base by 118 stores, bringing the total to 223 company-owned stores. As part of the transaction, BCI also plans to purchase 40% of the minority equity interest in BC New York, resulting in BCI owning approximately 84% of the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. developer. The remaining minority interest will be retained by BC New York's management and its private equity investors. Mark Stephens, vice-chairman and chief financial officer of BCI, said: "BC New York's solid store performance and development maturity make this an attractive transaction for BCI. We expect these 118 stores to begin to add to earnings immediately upon closing of the transaction. BCI makes loans, which can later be converted into majority equity, to its area developers as part of its rapid expansion strategy. These convertible loans allow area developers to open stores and create Boston Market brand awareness more quickly than with a traditional franchising structure. The New York conversion will reduce BCI's outstanding loans to area developers by $80 million. As part of the transaction, the management and private equity investors of BC New York will form a new Boston New Boston is the name of some places in the United States of America:
Scott Beck, chairman, chief executive officer and president of BCI, said: "BC New York's management asked to form a new area developer as an opportunity to continue to create value for themselves and their investors. We're delighted to have Bob Anarumo and his team, with their consistent quality of operations and strong store performance, continue developing stores in this very important market." Anarumo said the transaction allows BC New York's management and private equity investors the opportunity to further benefit from both the minority interest they retain in BC New York as well as their equity in BC Tri-States. "With this transaction, our investors will realize an attractive return on their investment to date as well as benefit from the additional upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside we expect as our system further matures," Anarumo said. BC New York owns and operates Boston Market stores in New York and portions of New Jersey and Connecticut. Boston Chicken, Inc. franchises and operates retail food service stores under the Boston Market brand name that specialize in fresh, convenient, innovative, meal solutions, featuring home style entrees, fresh vegetables, sandwiches, salads and side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order , included mashed potatoes n. pl. 1. Potatoes which have been boiled and mashed to a pulpy consistency, usu. with sparing addition of milk, salt, butter, or other flavoring. It is a popular accompaniment to a meat course [U.S., 1900's], providing bulk and calories to a meal. made form scratch. Boston Market combines the freshness and quality of traditional home cooking with convenience and value. On December 29, 1996, the end of BCI's 1996 fourth quarter, there were 1,087 Boston Market stores in 38 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Certain statements in this release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks, uncertainties and other factors which may cause the actual performance of Boston Chicken, Inc., and its area developers and franchisees and their Boston Market stores to be materially different from the performance expressed or implied by such statements. Such factors include, among others, competition; success of operating initiatives, advertising and promotional efforts; adverse publicity; changes in business strategy or development plans; availability and terms of capital; regional weather conditions; and other factors set forth in the Company's filings with the Securities and Exchange Commission. CONTACT: Boston Market, Golden Media Contact: Karen Rugen, 303/216-5776 Analyst Contact: Melissa Marsden, 303/216-5652 |
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