SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 9, 1997
FRANCHISE FINANCE CORPORATION OF AMERICA
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(Exact Name of Registrant as Specified in Charter)
Delaware 33-62629 86-0736091
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
17207 North Perimeter Drive, Scottsdale, AZ 85255
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (602) 585-4500
NONE
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(Former Name or Former Address, if Change Since Last Report)
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Item 5. Other Events.
The Registrant and its affiliates completed a private placement of
$232.1 million of secured franchise loan trust certificates on June 9, 1997. The
transaction, backed by a total of 551 loans with an outstanding principal
balance of $261 million, is comprised of 384 conventional, chain restaurant
mortgage loans and 167 conventional, chain restaurant equipment loans. The
offering was rated by both Duff & Phelps Credit Rating Co. ("DCR") and Moody's
Investors Service, Inc. ("Moody's") and was offered and sold by Merrill Lynch &
Co. and Smith Barney Inc.
The securitization consists of asset-backed securities priced in twenty
classes. The securities are backed by 291 fixed-rate loans and 260 floating-rate
loans. The transaction was treated as a sale for financial reporting purposes.
The loans, which were made subject to the Registrant's established chain
restaurant secured lending standards, are secured by first priority liens on and
security interests in real estate and equipment. Thirteen of the twenty classes
of certificates were rated investment grade by both DCR and Moody's. The
proceeds of the securitization will be used to reduce the Registrant's revolving
line of credit.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FRANCHISE FINANCE CORPORATION OF
AMERICA (Registrant)
Dated: June 20, 1997 By /s/ John R. Barravecchia
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John R. Barravecchia, Executive Vice
President and Chief Financial Officer
Dated: June 20, 1997 By /s/ Catherine F. Long
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Catherine F. Long, Senior Vice President,
Finance and Principal Accounting Officer
