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: May 14, 1998
FRANCHISE FINANCE CORPORATION OF AMERICA
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-13116 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 the sale of $305.2 million
of secured franchise loan trust certificates on May 14, 1998. The transaction,
backed by a total of 558 loans with an outstanding aggregate principal balance
of $335.3 million, was comprised of 502 conventional, chain store mortgage
loans; 50 conventional, chain store equipment loans; and six commercial loans
secured by real estate, equipment or other property related to the operation of
chain store facilities. The offering was rated by Duff & Phelps Credit Rating
Co., Fitch IBCA, Inc. and Moody's Investors Service, Inc. and was offered and
sold to a limited number of "qualified institutional buyers" under the federal
securities laws.
The asset-backed securities, which were offered and sold by Morgan
Stanley Dean Witter, Salomon Smith Barney and Merrill Lynch & Co., were priced
in 11 classes, all of which were rated investment grade. The securities were
backed by 425 fixed-rate loans and 133 floating-rate loans that were principally
secured by first priority liens on and security interests in real estate and
equipment. All of the loans were originated in accordance with the Registrant's
established chain store secured lending standards. The proceeds of the
transaction, which was treated as a sale for financial reporting purposes, are
expected to be used to fund future anticipated investments in chain store
properties and 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 1, 1998 By /s/ John Barravecchia
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John Barravecchia, Executive Vice
President and Chief Financial
Officer
Dated: June 1, 1998 By /s/ Catherine F. Long
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Catherine F. Long, Senior Vice
President, Finance and Principal
Accounting Officer
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