UNITED
STATES
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 (date of earliest event reported): September
8, 2006
DENNY’S
CORPORATION
(Exact
name of registrant as specified in its charter)
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Delaware
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0-18051
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13-3487402
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(State
or other jurisdiction of
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Commission
File No.
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(I.R.S.
Employer
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Incorporation
or organization
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Identification
No.)
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203
East Main Street
Spartanburg,
South Carolina 29319-0001
(Address
of principal executive offices)
(Zip
Code)
(864)
597-8000
(Registrant’s
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item
1.01 Entry into a Material Definitive Agreement
On
Friday, September 8, 2006, Denny's Inc. and Denny's Realty, LLC, affiliated
entities of Denny's Corporation ("Denny's), entered into an agreement to sell
to
National Retail Properties, Inc. (NYSE:NNN), a real estate investment trust,
66
franchise-operated Denny's restaurant properties for a purchase price of $67
million.
Denny’s
expects this sale to generate after-tax proceeds of approximately $65 million
and result in a gain on sale of assets of approximately $38 million. Consistent
with the requirements of Denny's credit agreement, the proceeds of these asset
sales will be applied to reduce the outstanding balance on Denny's $219
million first lien term loan. After
applying the net proceeds to reduce its debt, Denny’s expects annual net income
to increase by approximately $1 million as reductions in interest expense and
depreciation offset the loss of rental income. The transaction is scheduled
to
close within 30 days and is subject to customary closing
conditions.
Item
9.01 Financial Statements and
Exhibits
(c)
Exhibits
Exhibit
99.1 -- Press release issued by Denny's Corporation on September 12,
2006.
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 hereunto
duly authorized.
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Denny's
Corporation
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Date:
September 12, 2006
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/s/
F. Mark Wolfinger
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F.
Mark Wolfinger
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Senior
Vice President and
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Chief
Financial Officer
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