The merger of Pinstripes Inc. and Banyan Acquisition Corp., a publicly traded special purpose acquisition company (SPAC), resulted in an IPO. Pinstripes became a wholly-owned subsidiary of Banyan, which changed its name to Pinstripes Holdings Inc. (NYSE: PNST), and began trading on the New York Stock Exchange in January of this year.
The deal, valued at $438 million, unlocked significant capital to build on Pinstripes’ business model, leveraging Banyan’s hospitality sector expertise and merger capabilities. Headquartered in Illinois, restaurant chain Pinstripes combines bowling, bocce and Italian-American cuisine. The company sought to raise capital in the SPAC merger to fuel additional growth to deliver on an ambitious expansion plan.
Complex Fundraising
The deal incorporated a series of complex fundraising vehicles, including a $20 million investment from private equity firm Middleton Partners. Further funding came from a mix of the remaining balance of the cash held in Banyan’s SPAC trust and a $50 million senior secured term loan, due in 2028, from funds managed by alternative investments firm Oaktree Capital Management. Terms also include the option for Oaktree to loan an additional $40 million to Pinstripes following the 2028 loan completion.
Existing Pinstripes shareholders, including founder and CEO Dale Schwartz, rolled 100 percent of their invested equity into the merger, underscoring their commitment to a founder-and employee-led operations model. The result of the process? More than $70 million in gross cash proceeds that will immediately and directly fuel new venue growth, programming and initiatives.
Expansion Plans
Pinstripes currently has 16 locations across the United States and four more under construction. In addition, the company has identified opportunities for approximately 150 additional locations in the U.S. as well as an appetite from consumers internationally.
For more Deals of the Year coverage, see Mergers and Acquisitions Names the 2024 Middle-Market Deals of the Year.
