Seventy-year-old full service restaurant company Bob Evans Farms Inc. has signed a letter of intent to sell 145 restaurant properties to Mesirow Realty Sale-Leaseback Inc., an affiliate of Mesirow Financial Holdings Inc., for $200-million. Mesirow Financial is a Chicago based privately-held investment bank and capital management firm. The transaction is expected to close during its fourth fiscal quarter ending in late April 2016, and to yield net proceeds of approximately $165 to $170-million. The primary term of the lease, which will be treated as an operating lease, is 20 years with up to five successive five-year renewal options. “Completion of this transaction, after the previously announced sale-leaseback of two manufacturing facilities, marks another major milestone in the company’s efforts to monetize a significant portion of its real estate assets,” said Chief Administrative Officer & CFO Mark Hood. “We expect to use the net proceeds from this transaction to pay down debt and to repurchase shares, while maintaining prudent leverage.”  Franchise Capital Advisors along with Quantum Global LLC served as lead arrangers while J.P. Morgan Chase & Co. served as financial advisor to the company on the transaction. At the end of the second fiscal quarter in late October, 2015, Bob Evans Restaurants owned and operated 547 family restaurants in 18 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States. The restaurants operate under the Bob Evans Restaurants banner.  Bob Evans Farms Inc., through its BEF Foods segment, is also a producer and distributor of refrigerated side dishes, pork sausage and a variety of refrigerated and frozen convenience food items under the Bob Evans and Owens brand names.

Bob Evans Farms Inc. – 8111 Smith’s Mill Rd., New Albany, Ohio 43054 (800/939-2338 www.bobevans.com)