Ampco-Pittsburgh Corporation (NYSE:AP) announced on Saturday that it has closed on a sale and leaseback transaction for gross proceeds of USD19.0m and provided preliminary estimates of selected operating results for its third fiscal quarter ending 30 September 2018.
The sale and leaseback enables the group to release 65% of that value whilst retaining a long term lease, control of the operations and associated profits of the Hotel thereby keeping the remaining 35% within the group.
EK Senior VP-Corporate Treasury Brian Jeffery noted that the deal is the carrier's "first engine sale and leaseback transaction and is important for Emirates in that it gives us a great deal of operational flexibility for a significant part of our engine fleet." Apr 12, 2010
In this environment when raising finance is more difficult and residual values are falling, firms that outright purchase vehicles would do well to consider looking at sale and leaseback options to protect themselves against falling values and to free up capital tied up in their vehicles.
SALE and leaseback options might have been popular in the commercial property boom, but they are looking a distinctly less attractive option for loan-starved Tees Valley companies wanting to release equity for investment.