Monday, October 17, 2011

STORE Capital Completes $105 Million Sale-Leaseback with O’Charley’s Inc.

Scottsdale, AZ – October 17, 2011 – STORE Capital, a new-generation REIT formed to invest in single-tenant real estate, such as chain restaurants, supermarkets, health clubs, education and other retail, service and distribution facilities, announced today that it completed a $105 million sale-leaseback transaction with O’Charley’s Inc. (NASDAQ: CHUX), a multi-concept restaurant company that operates or franchises a total of 342 restaurants under three brands: O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks.

As part of the agreement, STORE Capital purchased 50 O’Charley’s restaurant properties and leased the assets back to O’Charley’s under long-term, triple-net leases. O’Charley’s announced that it will use the net proceeds from the transaction along with available cash to redeem $115.2 million of its senior notes.

Christopher H. Volk, chief executive officer of STORE Capital commented, “O’Charley’s Inc. has a proven track record of operating a number of highly successful restaurant brands. We are proud of our ability to add value to O’Charley’s through our tailored and efficient sale-leaseback transaction and we look forward to the mutual benefits of a long-term relationship.”

David W. Head, president and chief executive officer of O’Charley’s Inc. commented, “We are pleased to commence a long-term real estate financing relationship with STORE Capital. This strategic transaction strengthens our financial position by virtually eliminating the debt on our balance sheet. STORE Capital provided flexible and tailored terms and was a pleasure to work with throughout the process.”

Mr. Volk and several of his longstanding colleagues, including Morton H. Fleischer, formed STORE Capital in May of 2011 to help owners of single-tenant, operationally essential real estate optimize their capital efficiency. Messrs. Volk and Fleischer along with the rest of STORE Capital’s management team have successfully invested nearly $10 billion in single-tenant operational real estate assets since 1981, and guided the formation and ultimate sale of two successful publicly listed REITs resulting in significant returns for their shareholders.
About STORE Capital

STORE Capital is a new-generation real estate investment trust principally backed by funds managed by Oaktree Capital Management, L.P. STORE’s mission is to address the long-term capital needs of real estate intensive operating businesses throughout the United States. Through tailored real estate lease and mortgage financing solutions, STORE’s aim is to create wealth for its customers by improving the capital efficiency of their businesses.