Bloomin' Brands agrees to a stalking horse bid for franchisee's assets

Key points:

• Bloomin’ Brands has agreed to serve as a stalking horse bidder for “substantially all” of Out West’s assets following Out West’s bankruptcy filing.
• Out West is Bloomin’ Brands largest franchisee. It filed for Chapter 11 bankruptcy protection on November 2.
• A stalking horse bidder is the initial buyer and typically sets a floor on the asset sale.
• The $26.3M bid includes 61 Outback Steakhouse restaurants. The bid is to mitigate any disruption to the restaurants’ services. 
• Bloomin’ Brands also agreed to provide up to $5.5M in interest-free debtor-in-possession financing to support operations through the bankruptcy.  
• Bloomin’ Brands shares gained as much as 6.3% during Monday’s trading session.