NEW YORK, NY – February 6, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leader in the ownership and net leasing of corporate properties, today announced that it has closed on the acquisition of an office facility leased to a subsidiary of Newpark Resources, Inc ("Newpark"). The facility, located in Lafayette, Louisiana, was purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14). CPA®:14, a public non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group.
The 35,000 square foot facility, located in Lafayette, Louisiana, serves as the regional headquarters for SOLOCO LLC and Newpark Environmental Services, LLC, two wholly owned subsidiaries of Newpark. Under the terms of the sale-leaseback transaction, the facility is leased to Newpark under a 17-year bond-type net lease. The total cost of the facility was approximately $4.2 million.
Newpark, headquartered in Metairie, LA, is a niche provider of integrated site, environmental and drilling fluids services to the oil and gas exploration and production industry. The company operates primarily in the U.S. Gulf Coast region, and also maintains operations in west Texas, the mid-continent, the Rocky Mountains and Canada. Through its subsidiaries, Newpark sells drilling fluids and provides associated engineering services, either individually or as an integrated package. In addition, the company sells, rents and installs patented hardwood and composite interlocking mats used for temporary access roads and work sites in oilfield and other construction applications.
Commenting on the transaction, Edward V. LaPuma, Executive Director of W. P. Carey, stated, "W. P. Carey has more than 25 years of experience in successfully developing creative financing solutions that meet the specific needs of companies in virtually every industry, including highly specialized companies such as Newpark. Sale-leaseback financing continues to provide a viable and attractive source of non-dilutive capital for a broad spectrum of business enterprises. Despite the current economic slowdown, we are continuing to work closely with both public and private companies to develop flexible financing structures that will provide liquidity for both current and future operations."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm and its affiliates is one of the largest lessors of net leased corporate real estate in the nation. W. P. Carey & Co. LLC (NYSE: WPC), the largest publicly traded limited liability company in the world, owns and manages over 42 million square feet of property in the USA and Europe. Additional information about W. P. Carey can be found on the company's Web site: www.wpcarey.com
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.