NEW YORK, NY — September 3, 2002 — Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that it has acquired for approximately $33 million and leased-back the corporate headquarters and primary manufacturing facility of Bedford, MA-based Hologic, Inc. (NASDAQ: HOLX), a leading provider of women's diagnostic imaging systems and state-of-the-art digital radiography systems.
Under the terms of the transaction, Hologic's corporate headquarters in Bedford, MA and its Lorad mammography facility in Danbury, CT have been leased under a 20-year bond-type net lease. The properties acquired include Hologic's 207,000 square foot Class A office, research and manufacturing facility located north of Boston, which houses its corporate, bone assessment, digital systems and mini c-arm operations, as well as its 63,000 square foot office, research and manufacturing facility in Connecticut focused on mammography and breast biopsy. The facilities were purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15), W. P. Carey's newest publicly held non-traded real estate investment trust (REIT) and a member of the $3.5 billion W. P. Carey Group.
"This transaction is another example of how a sale-leaseback can provide a company like Hologic, with an alternative means of obtaining funds to pay down corporate debt," said Edward V. LaPuma, a Managing Director at W. P. Carey. "In today's tightening credit markets companies continue to realize the benefits of converting their bricks and mortar into working capital. This transaction provided us the opportunity to work with a talented management team, one we expect to develop a long-term relationship with in the years to come."
Glenn Muir, Executive Vice President & Chief Financial Officer of Hologic, Inc. said, "We are pleased to conclude this transaction as it essentially eliminates our long-term debt while reducing our overall expenses and also provides us with net cash proceeds after transaction costs of approximately $5 million. This sale-leaseback monetized our real estate assets acquired through the expansion and acquisition of Lorad, and allowed us to repay the $25 million note to Thermo Electron a year early. This will save us approximately $300,000 a year as the new rental expense of $3.2 million will be more than offset by the elimination of the interest expense on the note and the depreciation on the buildings."
Hologic, Inc. is a leading developer, manufacturer and supplier of medical imaging systems dedicated to serving the healthcare needs of women, and a leading developer of state-of-the-art digital imaging technology for general radiography and mammography applications. Hologic's core business units are focused on osteoporosis assessment, mammography and breast biopsy, direct-to-digital X-ray for general radiography applications and mini C-arm imaging for orthopedic applications.
CPA®:15 invests in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. CPA®:15 launched in November 2001, and currently has an ownership interest in 28 properties net leased to nine tenants.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be the leading lessors of net leased corporate real estate in the United States. As the largest publicly traded limited liability company in the world, the company owns and/or manages more than 450 commercial and industrial properties throughout the United States and Europe comprised of more than 60 million square feet of space.
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.
