Red Robin Gourmet Burgers, Inc. Completes Third Sale-Leaseback Transaction With Essential Properties Realty Trust, Inc.
March 04 2024 - 8:00AM
Business Wire
Gross proceeds of approximately $24 million for
ten owned properties
Expected to reduce debt by approximately $23
million
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or
the “Company”), a full-service restaurant chain serving an
innovative selection of high-quality gourmet burgers in a
family-friendly atmosphere, today announced it completed a third
Sale-Leaseback transaction with Essential Properties Realty Trust,
Inc. (NYSE: EPRT) to sell and simultaneously lease-back ten owned
properties.
The transaction generated gross proceeds of approximately $24
million. The Company anticipates net proceeds of approximately $23
million will be used to repay debt, pursuant to the Company’s
Credit Agreement.
Todd Wilson, Red Robin’s Chief Financial Officer, said, “We are
pleased to extend our partnership with EPRT, a best-in-class real
estate partner to middle market companies, with the completion of a
third sale-leaseback transaction. Over the past year, these
transactions have enabled us to reduce our debt by approximately
$49 million and unlock long-term value for our shareholders.”
Pete Mavoides, Essential Properties’ President and CEO, added,
“We greatly value our relationship with this iconic brand and would
like to thank Red Robin for their partnership. This transaction
adds another ten well-located restaurants to our portfolio, leased
on a long-term basis to a high-quality tenant.”
CBRE Group served as an advisor to Red Robin on the
transaction.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual
dining restaurant chain founded in 1969 that operates through its
wholly owned subsidiary, Red Robin International, Inc., and under
the trade name, Red Robin Gourmet Burgers and Brews. We believe
nothing brings people together like burgers and fun around our
table, and no one makes moments of connection over craveable food
more memorable than Red Robin. We serve a variety of burgers and
mainstream favorites to Guests of all ages in a casual, playful
atmosphere. In addition to our many burger offerings, Red Robin
serves a wide array of salads, appetizers, entrees, desserts,
signature beverages and Donatos® pizza at select locations. It’s
now easy to enjoy Red Robin anywhere with online ordering available
for to-go, delivery and catering, or you can download our new app
for easy customization, access to the Red Robin Royalty® dashboard
and more. There are more than 500 Red Robin restaurants across the
United States and Canada, including those operating under franchise
agreements. Red Robin… YUMMM®!
About Essential Properties Realty Trust, Inc. (NYSE:
EPRT)
Essential Properties Realty Trust, Inc. is an internally managed
REIT that acquires, owns and manages primarily single-tenant
properties that are net leased on a long-term basis to companies
operating service-oriented or experience-based businesses. As of
December 31, 2023, the Company’s portfolio consisted of 1,873
freestanding net lease properties with a weighted average lease
term of 14.0 years and a weighted average rent coverage ratio of
3.8x. In addition, as of December 31, 2023, the Company’s portfolio
was 99.8% leased to 374 tenants operating 588 different concepts in
16 industries across 48 states.
Forward-Looking Statements
Forward-looking statements in this press release regarding the
Company’s use of proceeds from its recently completed
Sale-Leaseback transaction, including anticipated debt repayment
and all other statements that are not historical facts are made
under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
assumptions believed by the Company to be reasonable and speak only
as of the date on which such statements are made. Without limiting
the generality of the foregoing, words such as "expect," "believe,"
"anticipate," "intend," "plan," "project," "could," "should,"
"will," "outlook" or "estimate," or the negative or other
variations thereof or comparable terminology are intended to
identify forward-looking statements. Except as required by law, the
Company undertakes no obligation to update such statements to
reflect events or circumstances arising after such date and
cautions investors not to place undue reliance on any such
forward-looking statements. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those described in the statements based on a number
of factors, including but not limited to changes in or the
effectiveness of the Company‘s “North Star” plan and other plans,
operations and/or strategic initiatives, including plans with
respect to the repayment of the Company’s debt and other risk
factors described from time to time in the Company's Form 10-K,
Form 10-Q, and Form 8-K reports (including all amendments to those
reports) filed with the U.S. Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20240304007518/en/
For Red Robin investor relations questions: Jeff
Priester, ICR jeff.priester@icrinc.com (332) 242-4370 For Red
Robin media relations questions: Kathleen Bush, Red Robin
Gourmet Burgers, Inc. kbush@redrobin.com (303) 846-5114 For
Essential Properties Realty Trust investor relations/media
questions: Mark E. Patten, Chief Financial Officer (609)
436-0619 info@essentialproperties.com
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