SCOTTSDALE, Ariz. Oct. 30 /PRNewswire/ -- Franchise Finance Corporation of
America (NYSE: FFA), the nation's premier specialty finance company dedicated
to providing real estate financing to the nation's most successful multi-unit
operators of chain restaurants, convenience stores, and automotive parts and
services outlets, has priced $150 million of 8.25% senior notes due Oct. 30,
2003 through Salomon Smith Barney. The notes, which are expected to close
today, were priced at a discount of 99.899% to yield 8.275% to the buyers.
The notes have been rated BBB- by Standard & Poor's, BBB by Duff & Phelps,
and Baa3 by Moody's Investors Services.
"This offering of senior unsecured notes is a particularly significant
accomplishment for FFCA given the current market environment," said FFCA
Chairman, President and Chief Executive Officer Morton H. Fleischer. "It
demonstrates our continuing ability to access capital to fund our business of
financing real estate, primarily in the chain restaurant industry. We will
use the net proceeds of the offering to pay down our bank credit line, freeing
up more investment capacity. We continue to see a great deal of investment
and financing opportunities that are attractively priced for our shareholders.
This offering improves our liquidity to be able to take advantage of these
opportunities.
"We consider our success at pricing and placing the notes a valid measure
of the market's faith in our ability to underwrite and invest in quality
assets, as well as our ability to grow prudently in the foreseeable future,"
Mr. Fleischer said.
Based in Scottsdale, Ariz., Franchise Finance Corporation of America, or
FFCA, is the country's premier specialty finance company dedicated to
providing real estate financing to the most successful multi-unit operators of
chain restaurants, convenience stores and automotive service and parts
outlets. The company's diverse financing alternatives include mortgage and
equipment loans, long-term real estate leases, construction and acquisition
financing, and other custom financing solutions. FFCA is unique among
specialty finance companies for its seasoned and stable portfolio that is
diversified by geography, by client and by industry, providing a solid
platform for growth. Its clients represent some of the best-known chains in
the country, including Applebee's, Burger King, Carl's Jr., Checker Auto
Parts, Circle K, Citgo, Hardee's, Taco Bell, Texaco, Valvoline Instant Oil
Change and Wendy's. The company is tax-advantaged as a real estate investment
trust. Please visit our web site at http://www.ffca.com.
SOURCE Franchise Finance Corporation of America
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Related links:
http://www.ffca.com
CONTACT:
John Barravecchia, Chief Financial Officer of
Franchise Finance Corporation of America, 602-585-4500; or,
Virginia St. John-Needham, General Information, 310-442-0599, or,
Nan Teele, Analyst, 415-986-1591, or, Michaelle Burstin, Media,
310-442-0599, all of the Financial Relations Board
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