Bob Evans Farms Signs Purchase and Sales Agreements on Sale-Leaseback of 145 Restaurant Properties for $200 Million; Closing ...
March 09 2016 - 7:46PM
Bob Evans Farms, Inc. (NASDAQ:BOBE) (“Company”) today announced it
entered into purchase and sale agreements with National Retail
Properties, LP, an affiliate of National Retail Properties, Inc.
(“NNN”) and Mesirow Realty Sale-Leaseback, Inc., (“Mesirow”),
providing for:
- the sale for a purchase price of $163.4 million by Bob Evans
Restaurants to NNN of a portfolio of 119 Bob Evans Restaurant
properties, and
- the sale for a purchase price of $36.6 million by Bob Evans
Restaurants to Mesirow of a portfolio of 26 Bob Evans Restaurant
properties.
Each of NNN’s and Mesirow’s obligations to consummate the
transactions is subject to completion of due diligence and certain
customary closing conditions.
As part of the transactions, Bob Evans Restaurants has agreed to
enter into absolute net master leases with NNN and with Mesirow
pursuant to which Bob Evans Restaurants will lease the locations
for an initial term of 20 years, with five renewal options of five
years each. The Company and BEF Foods, Inc. have agreed to
provide payment and performance guaranties to NNN and Mesirow.
Chief Administrative and Chief Financial Officer Mark Hood said,
“The sale-leaseback transactions are expected to provide the
Company with net proceeds (after tax- and transaction-related
costs) of approximately $165 to $170 million, which we expect to
use to pay down debt under the Company’s credit agreement,
repurchase Company shares, and for other corporate purposes, while
maintaining prudent leverage. The transactions are expected
to close before the end of the Company’s fiscal year-end on April
29, 2016.”
Information concerning this event 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 1995 Certain 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 restaurant real estate remains
subject to closing conditions and there can be no assurance if such
transaction will be 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 second fiscal
quarter (October 23, 2015), Bob Evans Restaurants owned and
operated 547 family restaurants in 18 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.
About Mesirow Realty Sale-Leaseback,
Inc.Mesirow Realty Sale-Leaseback, Inc. is the net-lease
real estate investment arm of Mesirow Financial, a highly
respected, Chicago based privately-held investment bank and capital
management firm founded in 1937.
BOBE-G
Contact:
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954
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