Bob Evans Farms Closes on a $30 Million Mortgage
Bob Evans Farms, Inc. announced it closed on a $30 million mortgage of its corporate support center in New Albany, Ohio.
The mortgage has a 10-year term with a variable interest rate, initially set at 5.1 percent. Additional information concerning this transaction was filed by the company with the Securities and Exchange Commission.
Mark Hood, the chief administrative and chief financial officer says, "I am pleased to announce closure of this transaction as it marks further progress toward completion of the real estate monetization initiatives we announced during the first fiscal quarter of 2016. As with the $51.6 million sale-leaseback transaction of two BEF Foods industrial properties completed in October 2015, and the anticipated closure on a $200 million sale-leaseback transaction of 145 Bob Evans Restaurants properties during the company’s fourth fiscal quarter ending April 29, 2016, we expect to use the net proceeds from this mortgage to pay down revolver borrowings which funded $131.9 million of share repurchases through November 30, 2015, as part of the company’s ongoing $250 million share repurchase authorization."
Hood continues, “The $200 million restaurant property sale-leaseback transaction is progressing as expected and we look forward to announcing completion of that transaction by the end of April 2016."
Bank of America Merrill Lynch and JPMorgan Chase Bank, N.A served as underwriters on this transaction.