Multi-concept operator Matchbox Food Group said it is issuing 10.5 million bonds as the second phase of an effort to raise $20 million in expansion capital for the next five years.
The subordinated promissory notes pay interest of 10.125 percent over a seven-year term.
The Washington, D.C.-based operator, best known for its Matchbox pizza chain, has been selling shares in the company for $1 each. The company said it has 4 million shares yet to sell.
The debt and equity programs should deliver the $20 million that management has set as its capital needs to expand through 2020. Six Matchbox pizzerias are currently open in three states and the District of Columbia.
The company also operates an retro-airline-themed hot dog concept called DC-3, and the five-unit Ted’s Bulletin family chain.
Matchbox Food Group’s expansion plans call for opening about 36 Matchbox pizzerias through 2020, and an unspecified number of Ted’s all-day restaurants.