W.R. Grace & Co. said that Drexel Burnham Lambert Inc. has obtained financing commitments for approximately $275 million in connection with the previously announced $776-million management-led buy-out of the company's Irvine-based restaurant group.
Grace previously had obtained a commitment from Citibank to lead a consortium of banks to raise up to $325 million for the transaction.
The restaurant group, with annual sales in excess of $1 billion, operates more than 800 restaurants. Included in the leveraged buy-out are the Coco's, Carrows, jojos, Darryl's, Baxter's, Reuben's, Charley Brown' and the Gladstone's 4 Fish restaurant chains.
Also included in the transaction is El Torito, which operates 190 Mexican restaurants nationwide. Last week, Grace began a $20.5-per-share cash tender offer for the 27.5% of El Torito shares that it does not already own.