DineEquity Inc. on Monday said that it signed a new $950 million credit facility, and will sell 56 company-operated Applebee's restaurants in Missouri, Illinois and Virginia as part of an ongoing effort to improve its balance sheet.
The Glendale parent of Applebee's Neighborhood Grill & Bar and IHOP restaurants plans to use proceeds from the two-part senior secured credit agreement, made by a group led by Barclays Bank Plc, to pay for previously announced tender offers, redeem shares of Series A perpetual preferred stock and similar actions.
In a separate announcement, DineEquity said the Applebee's restaurant sales in three states should net $38 million. DineEquity bought Applebee's in 2007 in a $2 billion leveraged buyout. The company, which had total debt of $2.2 billion at the end of June, has been working to reduce debt by selling restaurants to franchisees.
Thirty-six of the restaurants are located in St. Louis and Illinois. The buyer is Mid Rover Restaurants LLC, which already owns 12 Applebee's locations in Louisiana.
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