Investment from current shareholders Centurium Capital and Joy Capital will help facilitate a debt restructuring and pay an SEC settlement, Luckin says.
Luckin Coffee Inc. said it has secured a $260 million investment from two Chinese private-equity firms, funding that the troubled coffee chain operator said would support its debt restructuring and help pay a U.S. regulatory penalty over allegations it fabricated sales to make its growth appear stronger.
The investment is led by Centurium Capital, a Luckin shareholder, which has agreed to invest $240 million in senior convertible preferred shares, Luckin said. Fellow shareholder Joy Capital has agreed to invest $10 million.
Luckin Coffee Inc. is a Chinese coffee company and coffeehouse chain. It was founded in Beijing in 2017. As of January 2020, it managed 4,507 stores and exceeded the number of Starbucks stores in China.
Can’t stop reading? Read more
KKR closes $23bn North America fund, its largest regional private equity vehicle
KKR closes $23bn North America fund, its largest regional private equity vehicle KKR has closed...
Ares acquires 7.3m sq ft US logistics portfolio from EQT
Ares acquires 7.3m sq ft US logistics portfolio from EQT Ares has acquired a 7.3m sq ft US...
Jana Partners builds 5% stake in Alkami, eyes private equity exit route
Jana Partners builds 5% stake in Alkami, eyes private equity exit route Jana Partners has...