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Subsequent Events
9 Months Ended
Jan. 22, 2016
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On February 9, 2016, the Company closed on a $30,000 loan and mortgage on our corporate headquarters in New Albany, Ohio. The loan has a ten year term and is payable in equal quarterly installments over that period. The rate of interest is variable and is initially set at 5.1%. The Company and several wholly owned subsidiaries have provided guaranties for the loan. We intend to use the net proceeds from this loan to pay down debt under the Company's credit agreement and for other corporate purposes.
On February 18, 2016, the Board of Directors approved a quarterly cash dividend of $0.34 per share, payable on March 14, 2016, to shareholders of record at the close of business on February 29, 2016.
On February 23, 2016, the Company signed purchase and sale agreements on 145 restaurant properties for an aggregate purchase price of $200,000. The Company has agreed to sell 119 restaurant properties for $163,400 to National Retail Properties, LP ("National"), and 26 restaurant properties for $36,600 to Mesirow Realty Sale-Leaseback, Inc. ("Mesirow"). As part of the transactions, the Company has agreed to enter into absolute net master leases with each buyer, pursuant to which we will lease each location for an initial term of 20 years. The first year rent expense resulting from these transactions will be approximately $13,800, excluding the impact of deferred gains. The National lease includes a CPI-based rent escalator with a maximum 1.5% annual increase, while the Mesirow lease includes a fixed 1.5% annual rent escalator. The transactions are expected to provide the Company with after tax net proceeds of approximately $165,000 to $170,000. The Company and BEF Foods, Inc. have agreed to provide the lessors with a payment and performance guarantee. Consummation of the transactions is subject to completion of due diligence and certain customary closing conditions. Closing of the transaction is expected during the fourth fiscal quarter, which ends April 29, 2016.