Bob Evans Farms Completes $51.6 Million Sale-Leaseback Transaction of Two Industrial Properties and $44.4 Million of Q2 Fisca...
October 23 2015 - 4:01PM
Bob Evans Farms, Inc. (NASDAQ:BOBE) today announced it completed a
sale-leaseback transaction of its BEF Foods industrial properties
located in Lima, Ohio, and Sulphur Springs, Texas.
BEF Foods, Inc., a wholly-owned subsidiary of Bob Evans Farms,
Inc., and Broadstone Net Lease, Inc. (BNL), a private real estate
investment trust managed by Broadstone Real Estate, LLC., entered
into an agreement pursuant to which BEF Foods sold its industrial
properties located in Lima, Ohio, and Sulphur Springs, Texas, to
BNL for $51.6 million. Net transaction proceeds are estimated
at $50.0 million, with an estimated after-tax loss of $2.5 million,
or $0.11 per diluted share.
BEF Foods and BNL also entered into a lease agreement pursuant
to which BEF Foods leased both the Lima, Ohio, manufacturing
facility and the Sulphur Springs, Texas, manufacturing facility for
an initial 20-year term at an annual straight-line rent expense of
$4.1 million, inclusive of a $2.3 million deferred gain amortized
throughout the lease term. There are two ten-year renewal options.
The lease agreement contains “triple net” terms, which means BEF
Foods will remain responsible for all expenses associated with the
properties, including but not limited to maintenance, property
taxes, insurance, and facility expenses. Bob Evans Farms,
Inc. and Bob Evans Farms, LLC, have also guaranteed the lease
agreement.
Chief Administrative Officer and Chief Financial Officer Mark
Hood said, "With this transaction now complete, we continue to
pursue monetization of our corporate headquarters facility along
with approximately $200 million of restaurant properties. We
expect to utilize the net proceeds from these asset monetization
transactions to pay down debt and to repurchase shares, while
maintaining prudent leverage. During the second quarter, we
repurchased $44.4 million of shares, bringing fiscal year-to-date
share repurchase activity to $104.9 million. We expect to
complete the remainder of the current $150 million share repurchase
authorization during the balance of fiscal 2016.”
Information concerning this transaction was filed by the Company
today with the Securities and Exchange Commission and can be
obtained at www.sec.gov.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995Certain statements in this
news release that are not historical facts are forward-looking
statements. Forward-looking statements involve various important
assumptions, risks and uncertainties. Actual results may differ
materially from those predicted by the forward-looking statements
because of various factors and possible events. We discuss these
factors and events, along with certain other risks, uncertainties
and assumptions, under the heading “Risk Factors” in Item 1A of our
Annual Report on Form 10-K for the fiscal year ended April 24,
2015, and in our other filings with the Securities and Exchange
Commission. We note these factors for investors as contemplated by
the Private Securities Litigation Reform Act of 1995. Predicting or
identifying all such risk factors is impossible. Consequently,
investors should not consider any such list to be a complete set of
all potential risks and uncertainties. Any strategic
transaction with respect to our headquarters, our BEF Foods
Facilities or a portion of our restaurant real estate remains
subject to evaluation by the Board and there can be no assurance if
and when any such transaction will be undertaken or
consummated. Forward-looking statements speak only as of the
date on which they are made, and we undertake no obligation to
update any forward-looking statement to reflect circumstances or
events that occur after the date of the statement to reflect
unanticipated events. All subsequent written and oral
forward-looking statements attributable to us or any person acting
on behalf of the Company are qualified by the cautionary statements
in this section.
About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. owns and operates full-service restaurants
under the Bob Evans Restaurants brand name. At the end of the
first fiscal quarter (July 24, 2015), Bob Evans Restaurants owned
and operated 549 family restaurants in 19 states, primarily in the
Midwest, mid-Atlantic and Southeast regions of the United States.
Bob Evans Farms, Inc., through its BEF Foods segment, is also a
leading producer and distributor of refrigerated side dishes, pork
sausage and a variety of refrigerated and frozen convenience food
items under the Bob Evans and Owens brand names. For more
information about Bob Evans Farms, Inc.,
visit www.bobevans.com
BOBE-G
Contact:
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954
Bob Evans Farms (NASDAQ:BOBE)
Historical Stock Chart
From Jul 2024 to Aug 2024
Bob Evans Farms (NASDAQ:BOBE)
Historical Stock Chart
From Aug 2023 to Aug 2024