The seller was a family office that structured an initial sale leaseback
of the properties with the tenant.
Boyd Hoback, President and CEO said, "Our recent sale leaseback
transactions over the past three months combined with the continued improvement in our cash flow from operations has enabled us to repay 100% of our bank and term debt so that the Company is now debt free, with the exception of a few smaller capitalized equipment leases and maintenance truck loans.
From the buyer's perspective, a sale leaseback
can be an attractive investment in the real estate category as it requires less maintenance and administration than many multi-tenant real estate investments.
Craig Homan, President of ECP, said, "We have scrutinized the sale leaseback
market for several years, shopping providers and examining proposals, and each time resisting the seemingly laborious process so that we could continue to hold on to our real estate.
Every year we've done more and more sale leasebacks
The success of such a substantial deal, the largest in the history of CVS sale leaseback
transactions, is reflective of the results achieved when the skills and expertise of professionals in several practice areas are integrated," said Andrew R.
As a commercial real estate broker who specialized in sale leaseback
transactions and the leasing of office facilities in Northern New Jersey in the late 1980's, I had the occasion to speak to many financial officers at the CEO, CFO, Treasurer and
2 million sale leaseback
transaction with Senior Housing Properties Trust (NYSE: SNH) for 31 of the LTA communities.
Together, they have completed numerous bankruptcy and sale leaseback
transactions relating to many retailers, including Service Merchandise in 2002, Levitz and HomeLife in 1999 and 2002, respectively, Montgomery Wards and Lechmere in 1998, Hechinger in 2000, and Kmart in 1995 and 2002.
Upon consummation of the sale leaseback
transaction, WCAS and Constellation will provide funding consisting of approximately $170 million in subordinated debt facilities (the "Shareholder Notes" or "Notes"), which the company will use to acquire the CWA assets and fund ongoing capital expenditures and working capital needs of the newly acquired assets.
In this case, Ripplewood used sale leaseback
proceeds to fund the buyout of Lillian Vernon.
The proceeds from the sale of UI's interests in the plant will be used to terminate the lease and redeem the sale leaseback