NEW YORK, NY – October 9, 2002 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that it completed a $172 million commercial mortgage-backed securitization (CMBS) on behalf of itself and three of its affiliated publicly held non-traded real estate investment trusts (REITs). The sale of the bonds, known as Carey Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates, was backed by mortgages placed on properties owned and/or managed by W. P. Carey & Co.
Moody’s Investors Service and Fitch Ratings issued Aaa and AAA ratings respectively for $120 million worth of the bonds. In determining their ratings Moody’s and Fitch both highlighted the strength of W. P. Carey & Co. as a sponsor of the bonds. The sale is considered to be the largest CMBS in the history of securitized instruments to involve an underlying asset pool consisting solely of single-tenant; triple-net leased non-CTL (Credit-Tenant Lease) assets underwritten as real estate loans.
This transaction was the first CMBS issuance by W. P. Carey & Co. and its affiliates, Carey Institutional Properties, Corporate Property Associates 12, and Corporate Property Associates 14, members of the $4 billion W. P. Carey Group.
“This transaction was a watershed moment for W. P. Carey as it shows the innovative ability of W. P. Carey’s Finance Group to successfully find new ways of accessing the capital markets, regardless of macroeconomic conditions,” said W. P. Carey’s Co- CEO and President Gordon F. DuGan. “We believe that with interest rates at 40-years lows, now was a good time to lock in long-term financing for our investors. After reviewing our CMBS Moody’s Investors Service and Fitch Ratings issued Aaa and AAA ratings respectively on $120 million worth of the bonds. We pride ourselves in our history and tradition of serving as conservative and serious fiduciaries to our investors. This CMBS is evidence that our time-tested philosophy, that we’ve maintained for close to 30 years, will continue to benefit our investors in the future.”
The W. P. Carey Group was assisted by a number of organizations in the structuring and underwriting of its CMBS, among them: Price & Marshall, a boutique investment bank which specializes in securitized transactions; Hunter, Keith, Marshall & Co., and Stone & Youngberg LLC, who handled the sale of the bonds; Reed Smith LLP and Baker & McKenzie, who provided legal counsel; and Ernst & Young LLP, who provided accounting and tax advisory services.
Founded in 1973, W. P. Carey & Co. provides financing to companies around the world through the net lease or sale-leaseback financing structure. The firm and its affiliates continue to be leading lessors of net leased corporate real estate. As of September 30, 2002, W. P. Carey & Co., the largest publicly traded limited liability company, and its four REITs, had a diversified portfolio, which included more than 450 properties throughout the U.S. and Europe comprising of more than 60 million square feet. For further information about W. P. Carey’s financing services and investment products visit our website at www.wpcarey.com.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company’s filings with the Securities and Exchange Commission.
