Hologic has signed a 20-year bond type net lease on the 207,000-sf class A headquarters building it occupies in Bedford and a 63,000-sf office, research and manufacturing property in Danbury. The Bedford facility houses Hologic's corporate, bone assessment, digital systems and mini-c-arm operations, whereas the company's Lorad mammography and breast biopsy unit is located in Danbury. Hologic acquired Lorad in September 2000 from Waltham, MA-based Thermo Electron Corp. in a $52-million deal.

W.P. Carey purchased the assets on behalf of Corporate Property Associates 15 Inc., the company's newest fund. "This transaction is another example of how a sale-leaseback can provide a company like Hologic with an alternative means of obtaining funds to pay down corporate debt," says Edward V. LaPuma, a Managing Director at W. P. Carey. "In today's tightening credit markets companies continue to realize the benefits of converting their bricks and mortar into working capital. This transaction provided us the opportunity to work with a talented management team, one we expect to develop a long-term relationship with in the years to come."

Hologic is using a portion of the sale proceeds to pay off its $25-million note payable from the Lorad acquisition. The transaction leaves less than $3 million of debt and roughly $40 million in cash on Hologic's balance sheet. Glenn Muir, Executive Vice President & Chief Financial Officer of Hologic, Inc. says the deal "essentially eliminates our long-term debt while reducing our overall expenses and also provides us with net cash proceeds after transaction costs of approximately $5 million.