HEATHROW, Fla.--(BUSINESS WIRE)--Sept. 19, 2008--Ruth's
Hospitality Group, Inc. (Nasdaq: RUTH) today announced that on
Wednesday, September 17, 2008, the Company completed its sale of five
restaurant properties to Sovereign Investment Company for an aggregate
purchase price of $17.6 million. Concurrent with the sales
transaction, the Company entered into agreements to lease the
properties back for initial terms of between 12 and 20 years, along
with two five-year options. The properties are located in Metairie,
LA; Palm Beach and Sarasota, FL; Columbus, OH; and Palm Desert, CA.
Proceeds from the transaction were used to reduce the Company's
outstanding debt balance on its revolving credit facility.
Bob Vincent, Executive Vice President and Chief Financial Officer
of Ruth's Hospitality Group, Inc., "We are very pleased to have
completed this transaction. As previously communicated, one of our
primary corporate objectives at this time is to maximize free cash
flow and pay down debt, so that we can ensure maximum operating
flexibility as well as remove any risk related to our debt covenant
compliance. In addition to several ongoing cost-cutting initiatives in
the areas of supply chain, G&A, and restaurant level expenses, we
believe monetizing some of the assets on our balance sheet is an
effective means to reduce our leverage."
About Ruth's Hospitality Group
Ruth's Hospitality Group, Inc. (Nasdaq: RUTH) is a leading
restaurant company focused exclusively on the upscale dining segment.
The Company owns the Ruth's Chris Steak House, Mitchell's Fish Market,
Mitchell's Steakhouse and Cameron's Steakhouse concepts. With more
than 144 company- and franchisee-owned locations worldwide, Ruth's
wHospitality Group was founded in 1965 and is headquartered in
For further information about our restaurants, to make
reservations, or to purchase gift cards, please visit:
www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com. For more
information about Ruth's Hospitality Group, please visit www.rhgi.com.
About Sovereign Investment Company
Sovereign Investment Company is one of the largest and fastest
growing private equity investors providing sale-leaseback capital to
owners, operators and developers of single-tenant, net-leased real
estate. Well-capitalized and positioned for growth, Sovereign is
actively pursuing restaurant, retail, office and industrial investment
opportunities. Since 2004, Sovereign has invested more than $825
million in long-term, net-leased properties nationwide.
Alecia Pulman, 646-227-1220
Tom Ryan, 203-682-8200
Raphael Gross, 203-682-8200
SOURCE: Ruth's Hospitality Group, Inc.