Sotheby’s completes the purchase of its HQ
Güncelleme Tarihi:
Hürriyet Daily News
Oluşturulma Tarihi: Şubat 19, 2009 00:00
ISTANBUL - Sotheby's has completed the purchase of its New York headquarters in a $370 million deal, reported Antiques Trade Gazette, a weekly newspaper of the fine art and antiques industry.
The purchase price for the York Avenue offices and auction rooms was funded by the assumption of the prior owner’s $235 million mortgage at a rate of 5.6 percent a $50 million cash payment made in January 2008, and an $85 million cash payment made Feb. 6.
Chief Executive Bill Ruprecht pointed out that one of the key financial benefits of the deal was that it allowed the firm to replace their capital lease obligation on the property at a 10.4 percent rate with a mortgage at a rate of 5.6 percent.
"This will result in annual cash interest expense savings on the building of approximately $4 million in 2009," he said.
Sotheby’s also announced that they had reduced their total borrowing capacity from $300 million to $250 million, "all of which is currently un-drawn."
"Management concluded the reduction in the total borrowing capacity is appropriate in light of the company’s current cash balances and projected liquidity needs," said Chief Financial Officer Bill Sheridan.
Chief Executive Bill Ruprecht pointed out that one of the key financial benefits of the deal was that it allowed the firm to replace their capital lease obligation on the property at a 10.4 percent rate with a mortgage at a rate of 5.6 percent.
"This will result in annual cash interest expense savings on the building of approximately $4 million in 2009," he said.
Sotheby’s also announced that they had reduced their total borrowing capacity from $300 million to $250 million, "all of which is currently un-drawn."
"Management concluded the reduction in the total borrowing capacity is appropriate in light of the company’s current cash balances and projected liquidity needs," said Chief Financial Officer Bill Sheridan.