Investment Opportunity
YUM! Brands is the world’s largest restaurant company based on system units with over 35,000 stores in over 100 countries. Taco Bell is one of five concepts held by YUM! Brands and is the fourth largest QSR chain in the U.S. With a 65% market share, Taco Bell is the clear leader in the Mexican QSR segment. Taco Bell has a strong brand identity and operates in the stable, non-faddish segment of the restaurant business, and is regarded as one of the top three QSR chains with regard to brand strength (along with McDonald’s and Sonic), and #1 in “value for your money.” The concept’s brand strength has been supported primarily by its Big Bell Value Menu, which offers large quantities of food at very reasonable prices, which has served to both secure its core market of 18- to 35-year old males as well as attract customers to its more premium products. Additionally, Taco Bell invests heavily in their brand, spending over $250 million per annum in network advertising and product promotion in support of the Taco Bell brand. Taco Bell Corp. has focused on expanding its new product pipeline and broadening the scope of its promotional strategy in order to continue to drive customer traffic.

Business Description
Coastal QSR is a YUM! Brands franchisee and owns and operates 44 restaurants in the Ft. Myers, West Palm Beach, and Tampa, Florida markets. These restaurants include 34 Taco Bell, one Long John Silver’s and 10 YUM! multi-branded restaurants. Coastal QSR has experienced strong revenue growth over the past few years, growing at a compound annual growth rate of 10.1% from 2002 through 2006. These increases have been driven by strong management leadership and continued population growth in the Southeastern U.S. Coastal QSR’s markets have shown an average population increase of 17% from 2000 to 2006, with projected 33% average increases from 2006 to 2020. In two of its primary markets, the Company is the dominant Taco Bell franchise with no competition in the Mexican QSR segment.

Transaction Description
In January 2008, Coastal QSR acquired 44 Taco Bell and YUM! multi-branded restaurants from an existing YUM! franchisee. Prometheus arranged a senior term loan from Bank of America with an additional facility for new store growth. In addition, Norwest Mezzanine Partners provided the majority of the subordinated debt.

Immediately following closing, the Company is focused on implementing a growth strategy focused on new store development and on reinvesting capital in the existing physical plant through reimaging and remodeling its stores.