The deal is expected to generate gross proceeds of about $347 million before taxes, according to a press release from locally based IHOP. An SEC filing by the company states that assuming the sale price of $347 million, "the net after-tax cash proceeds would be approximately $294 million." It plans to use all after-tax proceeds to pay down debt.

The deal is expected to close no later than June 16. The gross price is subject to adjustment based on restaurant sales for the 12-month trailing period ended this April 30. Those results are not yet available, but the final price is to be set no later than June 1.

Under the agreement, the buyer has a limited right to not buy up to 15% of the total number of restaurants in the deal if the properties have material defects related to their condition and such factors as access, zoning and title. Should the total fall below 187 units, the overall purchase price would be adjusted downward.