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FFCA Provides Approximately $52 Million of Sale Leaseback Financing to O'Reilly Automotive, Inc.

12 January 2001

FFCA Provides Approximately $52 Million of Sale Leaseback Financing to O'Reilly Automotive, Inc.

    SCOTTSDALE, Ariz.--Jan. 12, 2001--Franchise Finance Corporation of America ("FFCA") today announced it has provided approximately $52 million in financing to U.S. Realty Advisors, LLC ("USRA") for 90 automotive parts stores sold and leased back by O'Reilly Automotive, Inc. ("O'Reilly"), one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States.
    Under terms of the proposed transaction, which closed on December 29, 2000, the purchase of the 90 automotive parts stores was financed by USRA's equity investment and FFCA's fixed rate mortgage financing supported by master leases between affiliates of USRA and O'Reilly.
    Stephen G. Schmitz, Executive Vice President and Chief Investment Officer of FFCA, said, "Over the past two years, FFCA and USRA have developed an on-going relationship that allows FFCA clients to monetize the value of their real estate assets and thereby put capital into their business operations. This latest transaction with O'Reilly once again demonstrates FFCA's ability to develop creative financial solutions for our clients, allowing them to enhance their capital structure and positively impact the bottom line."
    "USRA and FFCA were very responsive and creative in tailoring this transaction to our specific financing needs," stated James R. Batten, Vice President of Finance and Chief Financial Officer of O'Reilly. "They were also able to complete this transaction on a very aggressive timetable, at our request."
    "O'Reilly's decision to consummate a sale/leaseback transaction exemplifies the approach many corporations are taking today with respect to their real estate assets," added Laurie A. Hawkes, Partner of USRA. "The company recognizes that corporate ownership of real estate can be a sub-optimal use of capital, particularly given increasing constraints in the financial markets. We were very pleased that the FFCA/USRA joint funding program enabled O'Reilly Automotive, Inc. to address its financial objectives."
    Based in Scottsdale, Arizona, FFCA is the country's premier single-tenant retail property finance company dedicated to providing real estate financing to multi-unit operators of chain restaurants, convenience stores and automotive services and parts outlets. The company's financing alternatives include mortgages and long-term real estate leases, construction and acquisition financing, equipment loans, and other custom financing solutions. Diversified by industry, geographic location, client and chain, FFCA had an investment/servicing portfolio of more than 5,900 properties throughout the U.S. as well as in Canada as of September 30, 2000. Its clients operate some of the best-known chains in the country, including Applebee's, Arby's, Burger King, Checker Auto Parts, Chevron, Circle K, Citgo, Cracker Barrel, Hardee's, Jack in the Box, Long John Silver's, Midas Muffler Shops, Pizza Hut, 7-Eleven, Taco Bell, Texaco, Valvoline Instant Oil Change and Wendy's. Visit our website at www.ffca.com for more information about the company.
    Headquartered in New York City, USRA specializes in the acquisition of real estate properties net leased to corporate tenants. Over the past decade, USRA has completed over $18 billion of leveraged lease, sale/leaseback transactions and complex recapitalizations. Assets acquired represent the full spectrum of real estate including restaurants, retail/convenience stores, office, industrial, lodging, media/entertainment and destination hotel resorts. USRA has investments in 45 states and Mexico with a current portfolio value in excess of $6 billion.
    Headquartered in Springfield, Missouri, O'Reilly Automotive, Inc. is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the company currently operates 673 stores in Missouri, Arkansas, Kansas, Oklahoma, Nebraska, Iowa, Illinois, Texas and Louisiana.