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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-03-31 00:00:00",
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  "notes": "Uses a diagram to illustrate two potential corporate restructuring scenarios (Structure A and B) to bypass covenants.",
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      "text": "There are multiple avenues to avoid triggering Make-Whole Payments.",
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      "text": "In addition, even if the REIT is spun off rather than the OpCo and the covenants are deemed to apply to the subsidiaries that hold real estate, this may not constitute a sale-leaseback, as there may be no “sale” transaction.",
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      "text": "Management has also said that the Sale / Leaseback covenant would require the Company to pay Make-Whole Payments in any significant real estate transaction. First, as discussed earlier, according to management's own written interpretation, the covenants do not apply to subsidiaries that are structured as trusts. Second, they do not apply to subsidiaries “the principal business of which consists of the owning, leasing, dealing in or development of real property,” – one would think a REIT fits this definition. Third, even if the covenants are deemed to apply to all of Darden's subsidiaries, Darden could also avoid the Sale / Leaseback covenant by converting the parent company into a REIT and spinning the OpCo off to shareholders.",
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      "text": "This should avoid triggering the covenant, because Darden as the REIT “will not have sold or transferred any of their properties, and there is no restriction on leasing those properties.”",
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      "text": "5 Management has misled shareholders regarding potential debt breakage costs (cont’d)",
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