Item 2.01      Completion of Acquisition of Assets.

 

Federal Express Freight Facility

 

On July 8, 2009, the Company acquired a newly constructed freight facility entirely net leased to FedEx Freight and guaranteed by FedEx Corporation (the “FedEx Facility”).  The FedEx Facility is comprised of 152,640 square feet and is located in Houston, TX.  The purchase price for the FedEx Facility is approximately $31.7 million.  The primary lease term under this net lease arrangement is fifteen years, having commenced October 16, 2008, and provides for up to two successive five-year extensions.  The base annual rent of approximately $2.6 million increases by 8% every five years.

 

The purchase price is comprised of a combination of short-term bridge financing and proceeds from the sale of common shares.  The Company entered into a one-year bridge credit facility with Amegy Bank of Texas and received proceeds of approximately $15.9 million.  The credit facility bears interest at an annual rate equal to 5.75%.  The remaining portion of the purchase price was funded using availability under the Company’s related party bridge facilities and equity capital.

 

 FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko's. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage and global cargo distribution; international trade advisory services; and publishes customs duty and tax information, as well as provides Global Trade Data, an information tool that allows customers to track and manage imports. The FedEx Ground segment provides business and residential money-back-guaranteed ground package delivery services. The FedEx Freight segment offers regional next-day and second-day, and interregional less-than-truckload (LTL) freight services, as well as long-haul LTL freight services. The FedEx Kinko's segment provides document services, such as printing, copying, and binding services; and business services, such as high-speed Internet access and computer rental, videoconferencing, signs and graphics production, and direct mail services. This segment also offers retail products, such as specialty papers, greeting cards, printer cartridges, stationery, and office supplies, as well as provides Web-based services. The company also offers supply chain solutions, including critical inventory logistics, transportation management, fulfillment, and fleet services. FedEx Corporation, formerly known as FDX Corporation, was founded in 1971 and is headquartered in Memphis, Tennessee. FedEx Corporation stock is listed on the New York Stock Exchange, and FedEx has a credit rating of BBB.

FedEx Corporation currently files its financial statements in reports filed with the Securities and Exchange Commission, and the following summary financial data regarding FedEx Corporation are taken from such filings.

			Past Nine Months Ended			For the Fiscal Year Ended
			2/28/2009			5/31/2008			5/31/2007			5/31/2006
Consolidated Statements of Operations (in thousands)
Revenues		$	27,645,000		$	37,953,000		$	35,214,000		$	32,294,000
Operating Income			2,238,000			2,075,000			3,276,000			3,014,000
Net Income			1,366,000			1,125,000			2,016,000			1,806,000

 

		As of			As of the Fiscal Year Ended
		2/28/2009			5/31/2008			5/31/2007			5/31/2006
Consolidated Balance Sheets (in thousands)
Total Assets		$	27,006,000		$	25,633,000		$	24,000,000		$	22,690,000
Long-term Debt			1,918,000			1,506,000			2,007,000			1,592,000
Stockholders’ Equity			15,551,000			14,526,000			12,656,000			11,511,000

 

 

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