CVS East Cobb (Atlanta) Construction Completed and Open for Business.
Posted October 12, 2009 by netleasedCategories: 1031 Exchange, CVS/Pharmacy
CVS/Caremark Coming to Market With Sale/Lease-back Deal
Posted December 15, 2009 by netleasedCategories: CVS/Pharmacy, Sale Leaseback
| Another Financial News
2009-12-14 |
AFP Staff |
| Based on information received through December 8, 2009, Moody’s Investors Service assigns a provisional (P) Baa2 rating to $744.9 million of CVS/Caremark Lease-Backed Pass-Through Certificates, Series 2009-B, to be issued by a trust that will acquire 166 first-priority lien commercial mortgage, credit-tenant lease loans.
The loans will be secured by mostly newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS/Caremark Corporation (“CVS”). Each of the leases will be bondable and guaranteed by CVS, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2032. Fixed net rent under the leases will be sufficient to pay in full all interest and principal of the loans. The 166 drugstores are located in 34 states. In rating this transaction, Moody’s used its credit-tenant lease (“CTL”) financing rating methodology (“CTL approach”). Under Moody’s CTL approach, the rating of a transaction’s certificates is primarily based on the senior unsecured debt rating (or the corporate family rating) of the tenant, usually an investment grade rated company, leasing the real estate collateral supporting the bonds. This tenant’s credit rating is the key factor in determining the probability of default on the underlying lease. The lease generally is “bondable”, which means it is an absolute net lease, yielding fixed rent paid to the trust through a lock-box, sufficient under all circumstances to pay in full all interest and principal of the loan. The leased property should be owned by a bankruptcy-remote, special purpose borrower, which grants a first lien mortgage and assignment of rents to the securitization trust. The dark value of the collateral, which assumes the property is vacant or “dark”, is then examined; the dark value must be sufficient, assuming a bankruptcy of the tenant and rejection of the lease, to support the expected loss consistent with the certificates’ rating. Moody’s may make adjustments reflecting the possibility of lease affirmations by the tenant and for the landlord’s claim for lease rejection damages in bankruptcy. Moody’s also may give credit for some amortization of the debt, depending upon the rating of the credit tenant. In addition, Moody’s considers the overall structure and legal integrity of the transaction. The certificates’ rating may change as the senior unsecured debt rating (or the corporate family rating) of the tenant changes. |
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Citigroup sale a new start for Primerica
Posted November 21, 2009 by netleasedCategories: Atlanta Economy
Monday November 16, 2009 09:00 AM
Industry analysts said the deal will move Primerica, which employs about 1,991 people, mostly in Gwinnett County, out from under Citigroup’s shadow. That may allow Primerica to better capitalize on its organization of 100,000 independent salespeople, who operate similarly to multilevel marketers such as Amway, where higher-level agents earn a cut of commissions from the agents they recruit. …
Home construction plunges 10.6 percent in October
Posted November 21, 2009 by netleasedCategories: US Economy
Wednesday November 18, 2009 09:03 AM
Construction of new homes unexpectedly plunged last month, as builders waited to see whether lawmakers would extend a tax credit for homebuyers. The results underscore how much the housing market has been relying on government support for its fledgling recovery. The tax credit of up to $8,000 for first-time owners was due to expire on Nov. 30, but Congress voted to extend it …
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Mortgage apps, housing starts fall
Posted November 21, 2009 by netleasedCategories: Georgia Economy, US Economy
Wednesday November 18, 2009 11:16 AM
Recent enthusiasm for the housing market is waning. The latest reports show mortgage applications and new home construction on the decline. The Mortgage Bankers Association announced Wednesday that its index of applications fell 2 percent for the week ended Nov. 13 as purchase applications tumbled to a 12-year low. Now that President Barack Obama has signed an extension of the home buyer’s tax …
Jobless claims hold at 10-month low
Posted November 21, 2009 by netleasedCategories: US Economy
Thursday November 19, 2009 09:02 AM
The number of first-time filers for unemployment insurance was unchanged last week, holding at the lowest level since January, said a government report released Thursday. There were 505,000 initial jobless claims filed in the week ended Nov. 14, the same as the revised figure the previous week, the Labor Department said in a weekly report. A consensus estimate of …
Thomas Oliver: No recovery without small business
Posted November 21, 2009 by netleasedCategories: 1031 Exchange
Thursday November 19, 2009 07:00 PM
Within the last week, head honchos from the Federal Reserve, the Treasury, Goldman Sachs and Warren Buffett himself have expressed concern that small business isn’t responding as needed. And it is needed. Small business (defined as 500 or fewer employees) creates 60 to 80 percent of new jobs. So it’s not an exaggeration to suggest that without a healthy, growing small business sector, there …
The best and worst places to find a job in the U.S.
Posted November 21, 2009 by netleasedCategories: Georgia Economy, US Economy
Friday November 13, 2009 12:03 PM
Juju analyzed U.S. Department of Labor unemployment statistics in each metro area and then divided that number by the number of job openings in each city, company vice president Brendan Cruickshank said. Atlanta ranked 31st in the survey, with 7.5 unemployed people for every job listing. Nationally, there were 6.1 unemployed workers for every job opening in October, according to government data …
UPS sees slight uptick in holiday biz
Posted November 21, 2009 by netleasedCategories: Georgia Economy
Atlanta Business Chronicle
Monday November 16, 2009 12:02 PM
United Parcel Service Inc. expects Dec. 21 to be its busiest delivery day this year and it plans to hire 50,000 seasonal workers for the holidays.
The Atlanta-based package shipping giant (NYSE: UPS) expects to deliver some 22 million packages around the world — a 40 percent increase over normal daily delivery volumes.
From Thanksgiving to Christmas, UPS will deliver about 400 million packages around the world, up slightly compared with the 2008 holiday season.
To support the holiday package volume spike, UPS said it expects to hire about 50,000 seasonal workers.
UPS Airlines will handle the holiday rush by flying more than 330 additional flights a day during Peak Week, the four days leading up to Christmas Day. The company’s highest volume day for handling air express packages will be Dec. 23, when it will deliver more than 6 million air packages.
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United Parcel Service Inc. expects Dec. 21 to be its busiest delivery day this year and it plans to hire 50,000 seasonal workers for the holidays.
The Atlanta-based package shipping giant (NYSE: UPS) expects to deliver some 22 million packages around the world — a 40 percent increase over normal daily delivery volumes.
From Thanksgiving to Christmas, UPS will deliver about 400 million packages around the world, up slightly compared with the 2008 holiday season.
To support the holiday package volume spike, UPS said it expects to hire about 50,000 seasonal workers.
UPS Airlines will handle the holiday rush by flying more than 330 additional flights a day during Peak Week, the four days leading up to Christmas Day. The company’s highest volume day for handling air express packages will be Dec. 23, when it will deliver more than 6 million air packages.
Cuts unlikely in Georgia, NCR says
Posted November 21, 2009 by netleasedCategories: Atlanta Economy, Georgia Economy
Friday November 13, 2009 10:05 AM
“NCR is confident we will be able to meet the commitments made to the state of Georgia,” said NCR’s Cameron Smith without providing Georgia-specific details. NCR announced last summer the relocation of its headquarters from Dayton, Ohio, to Duluth —the economic-development coup of the recession-wracked year for Georgia. The company, which makes ATM machines, checkout scanners and self-serve …
Georgia unemployment rate at 10.2 percent in October
Posted November 21, 2009 by netleasedCategories: Atlanta Economy, Georgia Economy
Thursday November 19, 2009 07:00 AM
A year ago, that number was 6.9 percent, the state’s labor department said. October marks the first time in two years that Georgia’s unemployment rate has matched that of the national one. Otherwise, the number of people out of work in Georgia has been higher, the DOL said. “The recession will not end for the thousands of jobless Georgians until more employers start hiring again,” State Labor …
