General Electric Company (NYSE:GE) announced its Franchise Finance Business has issued a loan for $45 million to The Saxon Group. The Saxon Group is the largest franchisee of the McAlister Deli chain. The company served as the administrator for the senior credit facility. GE Capital served as lead arranger and book runner. The Saxon group has taken the franchise to extreme heights and is known for running a top-notch shop with favorable and consistent reviews.
The company started with one store back in 1982 and has since grown the operation to 61 shops in Texas, Oklahoma, Kansas and Missouri. General Electric Company (NYSE:GE) needed to refinance existing debt and used the credit facility to do so. It also used some of the credit to buy privately-owned shares and also buyout minority shareholders. Any leftover monies will be used for growth. McAlister’s is a fast casual operation and it features deli type foods such as sandwiches soups and an assortment of other varieties. The overall operation has 338 restaurants in 24 states.
The company also recently bid to take over the French multinational power company, Alstom. The deal has to pass regulators scrutiny though and that might be tough. General Electric Company (NYSE:GE) offered to buy Alstom for $16.9 billion in cash. There is a possibility a phase two investigation could be opened and that would only delay and further scrutinize the deal. Alstom specializes in manufacturing transport and energy infrastructure and both could offer some concessions to make the deal more palatable for regulators. GE wants to close the deal by the middle of the year. If the concessions are made by both sides then the target date is not unrealistic.
The stock has been in a strong uptrend and is edging closer to a breakout point. A break above $25.47 will signal that move. The internals are strong and momentum is favoring a move to the upside. Should it fails, there is ample support at $24.23.