New Plan Rlty Trust&Excel Rlty Trust Put on S&PWatch.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 5/15/98-- Standard & Poor's placed its ratings of New Plan Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Trust (New Plan) on CreditWatch with negative implications (see list above) following the announcement that the company will merge with lower rated Excel Realty Trust (Excel). The placement on CreditWatch affects about $545 million of debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Concurrently, Standard & Poor's placed its ratings on Excel on CreditWatch with positive implications. The placement on CreditWatch positive affects $225 million of debt and preferred stock. By combining New Plan's predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. eastern U.S. portfolio with Excel's predominantly southern and western portfolio, the merger will create a national strip shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into company, with 276 retail properties (34.7 million square feet) in 32 states. The company also will own 12,380 apartments in 14 states. The new company will be well positioned to be a consolidator in the strip shopping center sector. The addition of Excel's relatively younger management team helps to address New Plan's management succession issues. However, the merger results in a negative impact on New Plan's financial risk profile, as fixed charge coverages are expected to decline from 3.8 times (x) to 3.2x and leverage is expected to increase to 35% of the combined entity's capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. (book value basis). Additionally, it is as yet uncertain how the blending of New Plan's historically conservative management and Excel's more opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. management will influence the direction of the combined entity. The transaction will be structured as a tax-free merger with each New Plan shareholder to receive one share of Excel for each of their shares (following a special one-fifth share dividend to Excel shareholders). Upon completion of the merger, which is expected to close in the third quarter of 1998, the combined entity will be renamed New Plan Excel Realty Trust. Standard & Poor's will continue to monitor New Plan's and Excel's performance and review in detail the strengths and weaknesses of the proposed transaction and its likely impact on New Plan's rating. At present, the range of outcomes for New Plan include a modest downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. or a ratings affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. with maintenance of a negative outlook. Excel's ratings are dependent on the rating outcome of New Plan, but are not expected to be lowered.---CreditWire -0- RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS New Plan Realty Trust Ratings Corporate credit rating A+ $6.145 mil. 5.65% multi-fam hsg rfdg rev bnds A+/A-1 ser 1995-1 due 2008 $100 mil. 7.75% sr nts due 2005 A+ $81 mil. 6.8% sr nts due 2002 A+ $10 mil. 7.97% sr nts due 2026 A+ $273 mil. medium-term notes due 1996 - 2028 A+ $75 mil. ser A cum step-up premium rate pfd stock A $163.725 mil. debt shelf registration (prelim. rtg.)A+ $350 mil. mixed shelf registration (prelim. rtg.) A+/A $175 mil. med-term note program A+ $280 mil. mixed shelf registration (prelim. rtg.) A+/A RATINGS PLACED ON CREDIT WATCH WITH POSITIVE IMPLICATIONS Excel Realty Trust Ratings Corporate credit rating BBB- $75 mil. 6.875% sr unsecd nts due 2004 BBB- $150 mil. 8 5/8% ser B cum redeemable pfd stk BB+ $500 mil. mixed shelf registration (prelim. rtg.) BBB-/BB+ CONTACT: Elizabeth Campbell Elizabeth Pfohl Campbell (December 2, 1902 - January 9, 2004) is one of the first and most prominent public television pioneers in the United States. Campbell also served as a teacher, college administrator, as a notable school board member for Arlington Public Schools, and as the , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-8807 Thomas Merck, New York (1) 212-208-1998 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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