Bob Evans to pay down credit agreement via proceeds of portfolio sales

By Wendy Van Sickle

Columbus, Ohio, Feb. 25 – Bob Evans Farms, Inc. will pay down debt under its credit agreement with some proceeds from its sale of two portfolios of restaurants, according to a press release.

The company has entered agreements to sell a portfolio of 119 Bob Evans restaurants to National Retail Properties, LP for $163.4 million and 26 sites to Mesirow Realty Sale-Leaseback, Inc. for $36.6 million.

Bob Evans will lease the locations from the buyers for an initial period of 20 years. First-year rent expense under both leases will be $13.8 million.

The company said it expects to net about $165 million to $170 million at closing of the sale-leaseback transactions, which are expected before April 29.

The company will also use proceeds for share repurchases and general corporate purposes.

Bob Evans Farms owns and operates full-service restaurants and produces refrigerated and frozen convenience food items. The company is based in New Albany, Ohio.

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