New York, NY (Top40 Charts) McMenamins is seeking $20 million from accredited investors to shift its capital structure away from short-term bank debt and toward a greater reliance on equity. This is the first time the company has opened direct investment in McMenamins, Inc. to those outside the family. Funds from the offering will provide McMenamins with additional resources to return the company to pre-COVID levels and provide working capital for future projects.
McMenamins today announced a $20 million Preferred Stock Offering to retire short-term debt as a result of the COVID-19 shutdown and to proceed on some "secret projects" that have been in the planning stages for years. This is the first time the company has opened direct investment in McMenamins, Inc., to those outside the McMenamin family.
Complementing the independent spirit of the company, McMenamins aims to attract minimum investments of $100,000 or more from 150 to 200 accredited investors to shift the company's capital structure toward a greater reliance on equity. Monies raised will be used to bring the company back to pre-COVID-19 levels and to add lodging, meeting facilities, a bottle shop (and perhaps a secret bar!) at Cornelius Pass Roadhouse in Hillsboro, Ore., transform "The Jail" into a hotel at Edgefield in Troutdale, Ore., and other fun projects.
"We realized with the closures it would be quite a while until we could get to these very exciting projects. So, we're looking for investors who share our interest in family friendly pubs and hotels − people who already embrace our love of architectural restorations where artists have interpreted local history," said Mike McMenamin. "This is more than a financial investment, it's an investment in community building. Places for gathering and coming together will never go out of style. Our focus is on sustaining operations now and being ready for an exciting and creative future."
Accredited investors who take part in this unique opportunity will purchase a non-voting shareholder interest in the company. These are individuals with $1 million or more in net worth (excluding the value of the individual's primary residence) or more than $200,000 in annual income (more than $300,000 with their spouse) in the past two years. Certain institutions may also qualify as accredited investors.
This is a private placement of securities and units will not be publicly traded. Investors are expected to earn an annual 3 percent cumulative dividend and up to a 6.5 percent overall return over a timeframe of five, eight or ten years.
Although this is the first time McMenamins has sought investment at the company-wide level, the family invited outside investment from accredited investors to capitalize two previous fun and successful building restorations, the revitalization of the Anderson School in Bothell, Wash., and the Elks Lodge in Tacoma, Wash.
"Brian and I are as involved in the business as we first were when we started working together decades ago. We care as deeply as we did then," said Mike McMenamin. "Over time, as we have greatly expanded our community presence, our kids are now as involved and committed. Together, we share excitement about what's ahead."
McMenamins has experienced greater than market average revenue growth year on year. Prior to the current crisis, the company was experiencing one of its best financial first quarters in more than ten years.
For more information, go to https://invest.mcmenamins.com/
Founded by brothers Mike and Brian McMenamin with a single Portland neighborhood pub in 1983, McMenamins today lovingly operates eclectic pubs, restaurants, historic hotels, movie theaters, concert venues, spas and events for guests throughout the Pacific Northwest, 20 on the
National Register of Historic Places. The company handcrafts beer, wine, spirits, cider, ice cream, coffee and baked goods, and offers free community access to soaking pools, community gardens, billiards, music, history nights, half-night fundraisers and events designed to bring people together. For more information about, visit www.mcmenamins.com. For investment information, visit www.invest.mcmenamins.com.
