MoFo Closes $750 Million Financing for Restaurant REIT Spinoff

11/10/2015

Thomas R. Fileti, Geoffrey R. Peck, Joshua C. Pierce, Aisulu Masylkanova, Steven J Bleiberg, and Shane M. Shelley

REITs and Real Estate

MoFo News Item

MoFo represented JPMorgan, as joint lead bookrunner and joint lead arranger, in the $750 million financing of Four Corners Property Trust, Inc. (NYSE: FCPT) and its subsidiary, Four Corners Operating Partnership, LP, in connection with Four Corners’ spin-off from Darden Restaurants, Inc. (NYSE: DRI). The financing included a five-year term loan facility in the original principal amount of $400 million and a four-year revolving credit facility in the maximum principal amount of $350 million, as well as an accordion feature pursuant which the credit facilities may be increased up to an aggregate maximum principal amount of $1 billion. As of November 10, Four Corners is an independent, publicly traded company on the New York Stock Exchange and intends to elect to be treated as a real estate investment trust, effective January 1, 2016.

In connection with the spin-off, Four Corners acquired the real estate associated with 424 restaurants, which include 300 Olive Garden® restaurants, 104 LongHorn Steakhouse® restaurants, 11 Bahama Breeze® restaurants, two Seasons 52® restaurants, and one Wildfish Seafood Grille® restaurant. An estimated 418 of the properties will be leased back to Darden subsidiaries through triple-net leases with on average 15-year initial terms.

Los Angeles partner Tom Fileti and New York partner Geoffrey Peck led the deal team, with support from New York of counsel Josh Klayman; and New York associates Josh Pierce, Aisulu Masylkanova, and Steven Bleiberg. San Diego partner Shane Shelley and Los Angeles associate Clara Lim provided tax advice.

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