Chilango Extends Burrito Bond Offer Beyond Original December 2nd Deadline in Response to “Continuing Interest”

Chilango, a chain of “quick service” Mexican restaurants is extending their minibond offer beyond their originally announced December 2nd deadline.

According to Chilango, the Burrito Bond 2, which kicked off in October, will be extended into 2019.

Currently, Chilango is reporting that £2.4 million has been raised from about 400 investors.

Chilango first used the crowdfunded debt offering back in 2014 when the company raised over £2.1 million on Crowdcube. At that time, about 700 investors participated in an offer that combined a financial return with restaurant perks. This time, the restaurant decided to go it alone and is self-hosting the offer.

The Buritto Bond carries a fixed interest rate of 8% per year with the coupon paid every six months. The term of the bond is for four years and the bondholder has the option to receive the principle back at the end of the term or roll it forward.

Co-CEO Eric Partaker commented on the extension of the security offering stating that response has been “overwhelming.”

“The UK is riding a Mexican wave right now and we look forward to welcoming another round of investors and brand evangelists into the fold.”

Burrito Bondholders can receive a range of benefits. Starting at the minimum investment level of £500 –
every investor will receive a voucher for two free burritos and a £10 promotional code for a free burrito, delivered via Uber Eats. The perks scale up from there with investors committing £10,000 or more receiving a “Chilango Black Card” entitling one free burrito from Chilango a week during the lifetime of the bond.

Chilango reports that more than 100 Black Cards will be issued based on investments made so far.

Chilango will obviously use the additional capital to expand operations and to open more locations.

Financial results for last year came in at £10.3 million with £2.1 million in EBITDA expected during the current fiscal year.

The company currently has 11 restaurants in London and Manchester and over 140 employees.


Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Sponsored Links by DQ Promote

Send this to a friend