Red Robin Gourmet Burgers, Inc. Completes Sale-Leaseback Transaction With Essential Properties Realty Trust, Inc.
June 05 2023 - 8:30AM
Business Wire
Gross Proceeds of Approximately $29 Million for
Nine Owned Properties
Company Marketing Additional Properties for
Sale-Leaseback Transactions
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 that it has completed
an approximately $29 million Sale-Leaseback transaction with
Essential Properties Realty Trust, Inc. (NYSE: EPRT) to sell and
simultaneously lease-back nine owned properties.
Proceeds from the transaction will be used to repay debt and
fund capital investments, pursuant to the Company’s Credit
Agreement, and support repurchasing shares of Company stock.
Todd Wilson, Red Robin’s Chief Financial Officer, said, “We are
pleased to have partnered with EPRT, a best-in-class real estate
partner to middle market companies, on this initial tranche of
properties. We look forward to a long-standing and mutually
beneficial relationship with them.”
The Company has begun marketing additional owned properties to
explore one or more subsequent Sale-Leaseback transactions.
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
March 31, 2023, the Company’s portfolio consisted of 1,688
freestanding net lease properties with a weighted average lease
term of 13.9 years and a weighted average rent coverage ratio of
3.9x. In addition, as of March 31, 2023, the Company’s portfolio
was 99.8% leased to 348 tenants operating 556 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 and plans with respect to potential
future Sale-Leaseback transactions involving the Company’s owned
properties, 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 the following: changes in
the Company‘s plans, operations and/or strategic initiatives,
including plans with respect to the repayment of the Company’s
debt, capital expenditures and stock repurchases; risks associated
with and changes in the Company’s plans with respect to future
Sale-Leaseback transactions, including changes in demand for our
owned properties; 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/20230605005201/en/
For Red Robin investor relations questions: Raphael
Gross, ICR (203) 682-8253 investor@redrobin.com 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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