Corporate Recapitalizations

The sale leaseback assets of public and private high quality companies that are either not rated or lack investment grade ratings typically trade at a discount to comparable properties with investment grade credit ratings and their own corporate bonds. Many companies that once carried public ratings have either experienced a shift in ratings or have become unrated as a result of buyout companies taking them private. This shift in public ratings provides a growing opportunity to acquire high quality net leased assets through these recapitalizations at what ECM believes is a discount to market.