Denny's repays some term debt with asset sale proceeds

By Sara Rosenberg

New York, Sept. 28 - Denny's Corp. repaid some of its first-lien term loan debt using proceeds from the about $62 million sale of certain of its franchisee-operated restaurant properties to National Retail Properties, Inc., according to a company news release.

During the third quarter, the company prepaid about $80 million of its first-lien loan through a combination of asset sale proceeds and surplus cash, bringing its total long-term debt balance down to about $470 million as of Sept. 27.

"The completion of this transaction and the resulting debt reduction are significant milestones in Denny's continuing efforts to strengthen its balance sheet. Denny's has endured a heavy debt burden for many years which restricted its ability to grow," Nelson J. Marchioli, president and chief executive officer, in the release.

"Over the last five years we have successfully reduced our outstanding debt balances by approximately $160 million. While pleased with this progress, we will continue to pursue further debt reduction as an effective way to enhance value for our shareholders."

Denny's is a Spartanburg, S.C.-based full-service family restaurant chain.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.