The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Smiling Bob who wrote (124360)	5/21/2008 6:12:54 PM
From: Smiling Bob	Read Replies (1) of 306849

IHP got 15% back so far $1,750,000,000 to go. The 1900 strong chain netted 100,000,000 in a good year Operating income of 157 mil That will take care of a year's worth of interest, it the rates are 6% or so --- Sale-lease deal for Applebee's properties comes up short Wichita Business Journal - from the Kansas City Business Journal A sale-leaseback deal for Applebee's restaurant properties will net parent IHOP Corp. much less than it had been hoping for, according to a filing Wednesday with the Securities and Exchange Commission. IHOP (NYSE: IHP) said in the filing that it will receive about $294 million in after-tax proceeds from a deal it announced Tuesday to sell and lease back real estate parcels involving 187 Applebee's restaurants. That's $56 million less than IHOP CEO Julia Stewart had estimated in a Feb. 28 earnings call. The sale-leaseback deal, as well as a planned sale of company-owned restaurant operations to franchisees, were vital components in the financing of IHOP's $2.04 billion purchase of Lenexa-based Applebee's International Inc. in November. On Tuesday, IHOP said its sale-leaseback agreement with funds associated with Fortress Investment Group LLC would bring in pre-tax proceeds of $347 million. That amount, however, is subject to adjustments based on restaurant results for the 12 months that ended April 30 and an option that allows the buyer to cancel as much as 15 percent of the purchase if it finds material defects in properties. Stewart cautioned in an April first-quarter earnings report that the tight credit market could affect IHOP's efforts to complete a sale-leaseback agreement. In a conference call two months earlier, she had said that preliminary second-round bids indicated that IHOP would get after-tax proceeds of about $350 million.

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