Success Stories

Grifols, Inc.

Los Angeles, California
Cresa Capital Markets
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Client Objectives

Grifols had announced its intention to acquire Talecris Biotherapeutics. As part of the acquisition, Grifols’ banks required the company enter a sale/leaseback of certain assets. Grifols elected to sell and leaseback a newly constructed office and lab facility and related equipment located on the company’s Los Angeles campus. It was crucial that the company’s auditors treat the transaction as an operating lease. Also the transaction needed to minimize the tax impact to the company. Grifols’ credit rating was being downgraded to below investment grade as a result of Grifols taking on additional debt to purchase Talecris.

  • Maximize proceeds from the sale/leaseback
  • Minimize the tax impact
  • Identify low-cost sale/leaseback pricing
  • Close the sale/leaseback at, or prior to, the Talecris acquisition
  • Avoid burdening the company’s balance sheet with capital leases and achieve operating lease
  • treatment
  • Maintain long term operational control of the facility and equipment

Results

Cresa Capital Markets identified a party to purchase the office and lab facility and the equipment. Our firm also arranged the financing with a United States based life  insurance company. The building and equipment were bifurcated into separate leases. Both leases achieved Grifols’ necessary operating lease and tax treatment. Grifols maintained operational control of the facility and has the right to buy-back the building and equipment.

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