The Notes are senior secured obligations of Carrols Restaurant Group and are guaranteed by its material subsidiaries. Concurrently with the closing of the offering of the Notes, Carrols Restaurant Group also entered into a new $20 million revolving senior credit facility (including $15 million available for letters of credit) which was undrawn at closing. Carrols Restaurant Group used (or will use) the net proceeds of the offering of the Notes to (i) repay all outstanding borrowings under the existing Carrols LLC senior secured credit facility (including accrued and unpaid interest), (ii) pay certain cash payments due upon the closing of the acquisition of 278 BURGER KING ® restaurants from Burger King Corporation (which closed simultaneously with the offering), (iii) fund the remodel of acquired and existing BURGER KING ® restaurants in accordance with the terms of the acquisition mentioned above and (iv) pay related fees and expenses.