Quantum Converts $54.2 Million Synthetic Lease to Sale Leaseback

SEC Edgar Web Site - February 10, 2006

On February 6, 2006, Quantum Corporation terminated its existing synthetic lease agreement with SELCO Service Corporation for its Pikes Peak Corporate Center, located at 10125, 10205 and 10285 Federal Drive, Colorado Springs, Colorado and arranged for a sale of the Colorado Facility to CS/Federal Drive LLC, (Cushman & Wakefield Net Lease Trust, Inc.) and restructured its interest in the facility as a triple net operating lease.

Under the terms of the transaction documents, the Colorado Facility was sold to CS for a total sales price of approximately $54.25 million, of which the Company received approximately $2.6 million, with the remainder paid to SELCO in consideration of its synthetic leasehold interest in the property and covering costs associated with the transaction. In connection with the sale, the Company leased the three buildings located at the Colorado Facility from CS pursuant to three triple net leases with terms of 5, 7 and 15 years. The leases require the Company to pay initial base annual rent of $5,940,966.00 (10.95% cap rate) with annual increases of 2.0% and greater during the first five years of the lease. Sphere: Related Content