Waco wrote:http://sabana.listedcompany.com/newsroom/20130823_072507_M1GU_EE6DF52F7569516348257BCF0034DF20.1.pdf ?
They're selling their property again? I thought they learned their lesson in Austin...
And as last time, sale/leaseback is an every-day transaction in the corporate world and almost always done for sound financial reasons. It's not the sale proceeds, it's the beneficial accounting/tax treatment of lease obligations compared to depreciating fixed assets. Instead of depreciation over 31 years (US tax code for real property) the entire lease payment can be expensed for tax purposes.
It is one of the blessings of old friends that you can afford to be stupid with them. Ralph Waldo Emerson.