O'Charley's to repay term loan, some revolver debt with note sale, sale leaseback transaction

By Sara Rosenberg

New York, Oct. 21 - O'Charley's Inc. plans to repay its outstanding term loan and a portion of the outstanding borrowings under its revolver with proceeds from a proposed $125 million senior subordinated notes offering and an already completed $50 million sale and leaseback transaction.

The sale and leaseback transaction involved 23 O'Charley's restaurants. The terms of the agreement provide for an initial 20-year term with renewal options for up to an additional 20 years and provide for minimum average annual lease payments of $4.2 million for the initial 20-year term.

The Nashville restaurant chain also plans to enter into additional sale and leaseback transactions under which the company may sell and lease back up to 20 O'Charley's restaurants. These are expected to generate gross proceeds of up to $35 million, according to a news release.

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