New World Coffee – Manhattan Bagel, Inc.

Client Profile
New World Coffee – Manhattan Bagel, Inc. (NASDAQ: NWCI) is a vertically integrated franchisor of coffee bars and bagel bakeries with over 400 locations.
Situation
The Company sought financing to fund the purchase of the convertible subordinated bonds of a competitor, Einstein/Noah Bagel Corporation, that had filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
Solution
SSG placed $10 million in financing. The transaction was structured whereby the $10 million was invested into a new limited liability company managed by New World. The Einstein bonds held by the limited liability company are exchangeable into New World Series E redeemable pay-in-kind preferred stock.