DineEquity completes sale-leaseback of Applebee's HQ - Dallas Business Journal:

http://natchezpd.com/dispatch.html
In a release Thursday, DineEquity DIN), based in Glendale, said it will use about $20 milliomn of the proceeds to pay the remaining balance ofits $350 millio n consolidated funded debt and the remainder for expensesd for its acquisition of and for general corporatwe purposes. The transaction follows DineEquity'sd completion June 17 of a sale-leaseback of 181 Applebee's-ownec restaurant locations -- six fewer than previously expected -- for abougt $296 million in cash. DineEquity also generatefd about $27 million from the sale of 26 Applebee'se restaurants in Southern California earlierthis month.
DineEquity reiterateds in Thursday's release that it expects the sale of15 company-owne Applebee's locations in Nevadaa to close in the fourt quarter. The Lenexa headquarters sale-leaseback includes a primar y lease term of 15 years with four extension options of fiveyearx each. The initial lease paymen is expected to beabout $293,009 a month for the 180,000-square-footg building. DineEquity said it expectse the payment to be offsett in timebecause Applebee's plans to sublease part of the The sale-leaseback of Applebee's corporate headquarters buildingf does not qualify as a sale under accountinhg rules, DineEquity said in the release, because Applebee's will have ongoingg economic involvement with the property by subleasing part of the The $39 million in proceeds will be treated as a corporatwe borrowing and presented as a financing obligationj in DineEquity's consolidated balance sheet, the companyg said.
"We are on track and continues to make good progress on our assef disposition strategies and our plan to reduces consolidatedfunded debt," DineEquity Chairwoman and CEO Julia Stewartg said in the "We are wholly focused on our efforts to re-energize the Applebee's brand and to execute on our strateggy of franchising the majority of Applebee's company-operated DineEquity franchises and operates more than 3,300 Applebee'ds and IHOP restaurants.