Central Parking Announces the Sale of Its Remaining PropCo Properties and Retirement of All Outstanding PropCo Debt

Central Parking System, Inc. (Central) announced today that it successfully arranged for the sale of its wholly-owned property subsidiary PropCo properties. In the first of two coordinated transactions, Central completed the sale of six parking garages located in Manhattan to affiliates of Extell Development Company. As part of the transaction, Central will continue to manage the parking garage properties for Extell. The proceeds of the transaction were utilized to retire all of PropCos outstanding debt.
We are pleased to announce the completion of this transaction. Centrals business plan has included strategically monetizing the ownership of its property assets to deleverage the Companys balance sheet and focus on the core lease and management business, said James Marcum, Chief Executive Officer and President. By completing the sale of these Manhattan assets, we retired one hundred percent of the outstanding debt associated with our PropCo subsidiary that was formed when the Company was taken private in 2007.

According to Rick West, Executive Vice President based in New York who managed the sale, The recovery of property values in Manhattan earlier this year and the vision of Extell for what could be developed on these midtown properties in the future along with their commitment to work with us as partners in the ongoing management of these properties underpinned our ability to successfully close this transaction.

Central also announced that it has executed a definitive agreement to sell the remaining owned properties in its PropCo subsidiary. The sale is scheduled to close in the Companys second fiscal year quarter.

The agreement weve entered into to sell the remaining PropCo owned properties is a significant milestone for the Company, added Marcum. Under the terms of the purchase and sale agreement, Central will continue to lease or manage the sold properties located in various cities throughout the U.S., including Houston and Atlanta.

Added Lucinda (Cindy) Baier, Centrals Chief Financial and Administrative Officer, As all PropCo debt was retired with the sale of the New York properties, all proceeds from this sale of these additional PropCo properties will be used to further reduce Centrals liabilities.

About Central Parking

Central is a leader in parking management serving large and small property owners, infrastructure funds and governmental clients to maximize service, revenue and value creation. With operations in 38 States and Puerto Rico, the Companys locations include: mixed-use developments, office buildings, hotels, stadiums and arenas, airports, hospitals, universities, municipalities and toll roads. In addition, through its USA Parking subsidiary, Central is one of the premier valet operators in the nation with more four and five diamond luxury properties including hotels and resorts than any other valet competitor. Centrals over 1 million parking spaces operate under the brands Central Parking System, CPS Parking, New South Parking and USA Parking.
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