Red Robin Gourmet Burgers, Inc., a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today announced it completed a second Sale-Leaseback transaction with Essential Properties Realty Trust, Inc. to sell and simultaneously lease-back nine owned properties.
The transaction generated gross proceeds of approximately $31 million. The Company anticipates proceeds will be used to repay debt and fund capital investments, pursuant to the Company’s Credit Agreement, and may support repurchasing up to $5 million of Company stock.
Todd Wilson, Red Robin’s Chief Financial Officer, says, “We view EPRT as a best-in-class real estate partner to middle market companies and are grateful for their ongoing interest in our real estate portfolio. Through this second tranche of properties, we completed another step on our journey to create value for shareholders as we pay down debt and accelerate investments to drive growth.”
Pete Mavoides, Essential Properties’ President and CEO adds, “We are pleased to have the opportunity to partner with Red Robin and add another nine well-located restaurants, leased on a long-term basis to a high-quality tenant to our portfolio. We greatly value our relationship with this iconic restaurant brand.”
CBRE Group served as an advisor to Red Robin on the transaction.