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AEROTERMNAT REALTERM FCHREALTERM INDUSTRIALCASE STUDIES
Opportunity
- NAT approached YRC Worldwide (nation’s largest less-than-truckload logistics company) with a proposal to acquire up to $150 mm of company owned real estate assets through a sale-leaseback structure. This solution was aimed at relieving YRC’s balance sheet distress, while providing a market investment return to Realterm Global’s capital partners.
- YRC entered into an agreement with NAT, which had to be completed in a very compressed time frame.
Approach
- NAT completed a deep dive review of the entire US YRC corporate owned real estate pool within 1 week of going to contract.
- 30, mission critical assets were selected based on importance of location and other logistics underwriting metrics.
- Properties were acquired with new, 10-year corporate leases with annual rent escalations.
Accomplishments
- The transaction was completed on an all-equity basis as a result of the timing and distress in the capital markets.
- For YRC, significant capital infusion offers management team options to improve their liquidity and balance sheet position
Results
- Aggregate purchase price of $128 mm equity provided relief to YRC’s balance sheet.
- An accretive rate of return to ownership.
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