SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 11, 2006--A $50 million sale-leaseback for 34 Burger King locations is the largest of the year for GE Capital Solutions, Franchise Finance. The funding allows Simmonds Restaurant Management, a Nebraska-based company, to simplify their loan structure and re-capitalize the business to prepare for future growth.
"We knew consolidating multiple properties into a single sale-leaseback transaction would be a challenge, but given the climate of the market and low capital rates, this seemed like a perfect time to do so," says Michael Simmonds, CEO, Simmonds Restaurant Management.
Simmonds worked with The Cypress Group, a financial advising company, to help orchestrate the sale-leaseback with GE Capital Solutions, Franchise Finance. The Cypress Group specializes in franchise and multi-unit restaurant transactions and has worked with more than 1,000 Burger King locations.
"We are pleased to renew our relationship with Simmonds Restaurant Management," says Bill Pabst, vice president, GE Capital Solutions, Franchise Finance. "The people at Simmonds are well organized allowing everyone to meet timing expectations and efficiently fund this transaction."
Simmonds Restaurant Management operates 70 Burger King locations in Iowa and Nebraska.
"Given the size of the transaction, we felt GE Capital Solutions, Franchise Finance was best equipped to handle it on a timely basis," says Simmonds. "We are very pleased with their flexibility and ability to execute."
Pabst noted the significance of the sale-leaseback financing option for customers allows them to grow, compete, and prosper in the restaurant industry.
"Sale-leasebacks offer our customers an additional financing alternative by allowing owners to liquidate their assets and improve cash flow," says Pabst. "Simmonds Restaurant Management has a history of success with their current Burger King locations and we hope this deal funds them into the future."
GE Capital Solutions, Franchise Finance allows customers to "have it their way" whether funding new construction, acquisitions, refinancing, or remodeling.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 20 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports, and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).
GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $90 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts
Arment Dietrich
Gini Dietrich, 312-787-7249
[email protected]
or
GE Capital Solutions, Franchise Finance, Scottsdale
Christine Roe, 480-563-6260
[email protected]
Stephen White