ORLANDO -- Trustreet Properties Inc., a restaurant real estate investment trust (REIT), has entered into a definitive agreement to be acquired by GE Capital Solutions, Franchise Finance, a lender for the franchise finance market in the United States and Canada.
The transaction is valued at approximately $3 billion, including the payment of $17.05 per outstanding share of Trustreet's common stock, in the form of cash, and the assumption or refinancing of Trustreet's outstanding debt. GE Capital Solutions will add Trustreet's restaurant 1031 trading platform [image-nocss] to its own Franchise Finance business, and will also establish an East Coast office at Trustreet's headquarters in Orlando, Fla., where all sale-leaseback financing and related asset management will be handled for GE Capital Solutions' Franchise Finance business.
The transaction is expected to close during first-quarter 2007 and is subject to the approval of Trustreet's common shareholders and other customary closing conditions.
This transaction provides the opportunity to combine Trustreet's and GE Capital Solutions' complimentary industry best practices to dramatically expand the depth and breadth of financial services that can now be provided to our restaurant customers, said Curtis McWilliams, president and CEO of Trustreet Properties Inc. Trustreet'ssale-leaseback capabilities, combined with GE Capital Solutions' mortgage products, creates an expanded suite of products for restaurant operators that reinforce both companies' reputations as trusted business partners for the industry.
Trustreet Properties is a provider of triple-net lease financing to operators of national and regional restaurant chains. The company's core net-lease portfolio has more than 2,000 properties including full-service, family and quick-service restaurants diversified among more than 175 concepts and operated by more than 500 tenants in 49 states. This diversified portfolio includes some of the nation's most renowned restaurant brands such as Applebee's, Arby's, Bennigan's, Burger King, Golden Corral, IHOP, Jack in the Box, KFC, Pizza, Hut, TGI Friday's and Wendy's.
GE Capital Solutions Franchise Finance serves more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, storage and automotive industries. GE Capital Solutions Franchise Finance offers 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.
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