Steakhouse Partners, Inc. Announces $22 Million Sale-Leaseback Completed
SAN DIEGO, July 21 /PRNewswire/ -- Steakhouse Partners, Inc. (Nasdaq: SIZL),
today reported that its wholly owned subsidiary Paragon Steakhouse Restaurants,
Inc has successfully completed a sale-leaseback transaction of 19 of its
restaurants for $22 million to an entity controlled by Skyline Pacific
Properties LLC of San Francisco.
"The proceeds from the real estate sale will reduce our debt by
approximately $20 million, with the balance of the proceeds used for working
capital. The terms of the lease are on par with the market. Most importantly, by
eliminating $20 million of short-term debt, we believe that we addressed the
concerns of our outside auditors so that they may remove the 'going concern'
opinion on our financial statements," said Joseph L. Wulkowicz, Chief Financial
Officer.
Richard M. Lee, Chairman of the Board and Chief Executive Officer of the
Company, further commented, "this sale-leaseback is a major leap in our
financial strength. We now benefit from a relatively low level of debt compared
to our cash flow. Our strong financial position is rare for a company that has
under-gone a leverage buy-out just 18 months ago. We expect to capitalize on our
new financial strength by continuing to extend our leadership position in the
'step-up' steakhouse segment," concluded Mr. Lee.
Except for the historical information contained herein, this news release
contains forward-looking statements, which involve risk and uncertainties,
including the risk that actual results could differ materially from the results
that may be indicated by such forward-looking statements. Factors that could
cause or contribute to such differences include, but are not limited to, the
developments and market acceptance of new brands, and market conditions in the
steakhouse segment, as well as other risks detailed from time to time in
Steakhouse Partner's SEC reports.
SOURCE Steakhouse Partners, Inc.
-0- 07/21/2000
/CONTACT: Mr. Joseph L. Wulkowicz, Chief Financial Officer of Steakhouse
Partners Inc., 858-689-2333, [email protected]/ (SIZL)
