S&P Withdraws Cabot Industrial Properties LP Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 26, 2003 Standard & Poor's--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today withdraws its 'BBB' corporate credit rating and its 'BBB' senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating on Cabot Industrial Properties L.P. (Cabot) (see list). The rating withdrawals follow the completion of Cabot's consent solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with and tender offer for $200 million 7.125% senior unsecured notes due 2004, $15 million 8.2% medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. due 2005, and $40 million 8.5% medium-term notes due 2010. Cabot has received tenders for 98.13% of the 7.125% notes, 100% of the 8.2% notes, and 86.95% of the 8.5% notes. Tendering noteholders were paid a premium and post tender, less than $9 million in senior unsecured notes remain outstanding. As a result, Standard & Poor's will cease analytical coverage of the remaining Cabot senior notes. Cabot is a limited partnership that leases, manages, owns, and develops industrial properties throughout the U.S., and whose sole general partner is Cabot Industrial Trust. Cabot Industrial Trust is principally owned by Calwest Industrial Properties LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which is a joint venture between the California Public Employees' Retirement System (CalPERS), and RREEF America LLC and its affiliates. In December 2001, the Calpers/RREEF venture took Cabot private, folding the public REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). into its own smaller industrial property portfolio. Due to the generally moderate financial policies espoused by Calwest and giving some consideration to the strong sponsorship, Standard & Poor's ratings on Cabot were affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. following the transaction. The Cabot public bonds did contain the standard, somewhat more restrictive REIT bond covenant Bond covenant A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions. package, which served to limit both overall and secured debt leverage levels. The successful consent solicitation/tender enables Calwest to potentially pursue higher leverage levels.
RATINGS WITHDRAWN
Cabot Industrial Properties L.P.
Ratings
To From
Corporate credit N.R. BBB
$200 mil. 7.125% sr unsec nts due 2004 N.R. BBB
$20 mil. 8.5% sr unsecd mtns due 2010 N.R. BBB
$10 mil. sr unsec nts due 2010 N.R. BBB
$10 mil. sr unsec nts due 2010 N.R. BBB
$15 mil. 8.2% sr unsec nts due 2005 N.R. BBB
Copyright 2003, Standard & Poor's Ratings Services |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion