You work as the CFO for a publicly traded corporation as of today.

Your firm is a restaurant that has about 10% of its sales from take-out/delivery and is otherwise closed because of Covid.

Your firm has 250 restaurants nationwide and serve fast food you are like Shake Shack but based in the Midwest. Of the 250 restaurants, you own 100 of them and they have no debt on them.

Your firm has EBITDA of $200 million, debt of $800MM, and rent expense of $25 million. You have a credit facility that is fully drawn. You cannot issue any more unsecured debt.

Your CEO has told you that you must conserve cash and raise capital.

Question A: The firm needs money now. One of the below is not an acceptable way to raise capital what is the unacceptable choice below. Remember the firm needs money now what is the unacceptable choice:

1) Renegotiate leases with landlords

2) sell restaurants

3) sell restaurants to franchisors

4) issue secured debt on the restaurants