While the hospitality industry continues to struggle amid the pandemic, McLean-based Hilton Worldwide Holdings Inc. announced Tuesday it will sell $1.5 billion in debt in a private offering to institutional buyers.
This mark’s Hilton’s second major debt offering within the past couple of months. In November 2020, Hilton announced its $1.9 billion debt offering, from which proceeds will be used to redeem notes due in 2024 and 2025.
Through this offering, the hotelier will sell $1.5 billion of senior notes due in 2032. Hilton will use the proceeds to redeem all of its outstanding 5.125% senior notes due 2026, according to a company statement.
In June 2020, Hilton announced it was laying off 2,100 corporate employees — more than 20% of its corporate workforce.
Nassetta
“2020 was incredibly difficult for all of us at Hilton, on a professional and personal level,” Hilton President and CEO Christopher J. Nassetta said in a Jan. 6 statement. “We had to make really heartbreaking decisions about our team while navigating our business through an unprecedented standstill in global travel.”
Hilton will use the proceeds from the offering to redeem all of its outstanding 4.25% senior notes due in 2024 and use the remaining proceeds to redeem its outstanding 4.625% senior notes due in 2025, according to a company statement.
Due to the economic crisis, Hilton’s first-quarter 2020 revenues dropped by $284 million compared with 2019, with decreases continuing through the second quarter of 2020. The company reported slight improvements during the third quarter of 2020, but still saw a net loss of $81 million when compared with 2019. The company’s fourth quarter 2020 financial statements have not yet been released.
“A vaccine — in addition to ongoing common-sense safety precautions — will help people feel more confident in traveling domestically and internationally,” Nassetta said in a statement. “That confidence is going to be key in building momentum in recovery around the world, and in keeping our team members safe as they continue to spread the light and warmth of hospitality.”
During the next four years, Intertape Polymer Group Inc. (IPG) will expand its Pittsylvania Countymanufacturing operation, investing approximately $45 million and creating 50 jobs, Gov. Ralph Northam announced Tuesday.
The packaging products and systems company will add 30,000 square feet to its facility at 1101 Eagle Springs Road and invest in production, operations and capacity.
“Intertape Polymer Group has a long and successful history in Pittsylvania County, and we are thrilled to see the company continue to thrive in our commonwealth,” Northam said in a statement. “This significant investment and the creation of high-quality jobs is a win for our diverse advanced manufacturing industry and represents an important step forward in our efforts to ensure Virginia has a sustainable economic recovery.”
IPG is headquartered in Montreal, Quebec, and Sarasota, Florida, and employs approximately 3,500 people with operations in 31 locations. The company currently employs more than 300 Virginians at its Pittsylvania County operation. Virginia competed with Colorado, North Carolina and Utah for the project.
“Today represents another exciting milestone for our Danville-Pittsylvania County operations located in the Ringgold Industrial Park,” IPG Vice President of Operations Dave Bennett said in a statement. “Our flagship operation’s continued achievements in manufacturing excellence have been driven by a highly skilled and engaged workforce, and this certainly was an important factor in our decision to expand here.”
The Virginia Economic Development Partnership worked with Pittsylvania County and the Southern Virginia Regional Alliance to secure the project for Virginia, and Northam approved a $150,000 Commonwealth Opportunity Fund grant to help Pittsylvania County with the project. Northam also approved a $300,000 Virginia Investment Performance program grant, a performance-based incentive that encourages investment by existing Virginia companies.
IPG can receive Virginia Enterprise Zone Program and Major Business Facility Tax Credit Benefits. The Virginia Jobs Investment Program will provide employee training.
“IPG’s continued expansion and investments in its Pittsylvania County operation over the last three decades demonstrate the strength of Southern Virginia’s business-friendly climate and manufacturing talent pipeline,” Secretary of Commerce and Trade Brian Ball said in a statement. “Securing a competitive expansion project of this caliber says a great deal about the region’s top-notch workforce, competitive operating costs, and strategic location, and we look forward to IPG’s growth and continued success in Virginia.”
In its second acquisition announcement of the new year, Henrico County-based insurance company The Hilb Group LLC said Tuesday it has acquired Linwood, Michigan-based Owen Moore Insurance Agency, effective Dec. 31, 2020.
Financial details of the acquisition were not disclosed.
Founded in 1973, Owen Moore Insurance Agency (OMA) is a full-service property and casualty agency. It provides personal and commercial insurance products to individuals and businesses. Under the acquisition, OMA President Randal “Randy” Moore and his team will join THG’s Midwest operations.
“We are pleased to be a part of THG’s vision and focus,” Moore said in a statement. “THG’s innovative solutions for our clients will be an added benefit to our mission and culture.”
THG was founded in 2009 and has been a portfolio company of Washington, D.C.-based investment management company The Carlyle Group since late 2019. Across its 90 offices in 21 states, the company employs more than 900 people. THG has acquired more than 100 companies.
“We are excited to welcome Dwayne and his team to THG,” THG CEO Ricky Spiro said in a statement. “We are confident they will strengthen our employee benefits practice and presence in the region.”
The U.S. Navy awarded Newport News-based Huntington Ingalls Industries (HII) a $174.9 million contract to maintain and repair elevator support units aboard the branch’s nuclear-powered aircraft carriers, the Department of Defense announced Friday.
HII will perform work on units stationed across the United States and other deployed locations, according to the DOD. Work is expected to be completed by January 2026.
Navy CVNs (aircraft carrier nuclear propulsion) united are used to perform maritime security missions and support air vehicles.
HII is the nation’s largest military shipbuilding company, employing more than 42,000 people worldwide.
Virginia Beach-based DroneUp LLC announced Tuesday it has hired Carl Smit as its chief strategy officer.
In his new role, he will advise CEO Tom Walker and DroneUp’s senior leadership team to set the strategic direction of the company and focus on growing its retail drone delivery offerings. He will also oversee corporate development including mergers, acquisitions, partnerships and joint ventures.
“[Smit’s] experience in global retail, product development and innovation will be invaluable as we continue our record growth,” Walker said in a statement. “I look forward to Carl’s counsel and having him as part of our senior leadership team as we continue our leadership position in the retail drone delivery market.”
Smit started his career as a U.S. Navy SEAL and then spent nearly a decade working with Apple Inc. He also previously worked for Under Armour Inc. and then served as vice president of retail experience for Verizon Communications Inc. He most recently worked as an independent consultant to consumer electronics and retail clients.
Smit earned his bachelor’s degree from the U.S. Naval Academy and his master’s degree in business administration from INSEAD.
During the COVID-19 crisis, DroneUp has been testing how drones can assist medical professionals in delivering test samples and personal protective equipment in no-contact, emergency situations. The company was founded in 2016 and provides aerial data collection, training, program integration and equipment sales. It has more than 10,000 certified drone pilots.
Herndon-based federal contractorConstellis announced Tuesday that CEO Tim Reardon has resigned to “pursue other interests,” and the company’s lead director, Terry Ryan, will replace him, effective immediately.
“It has truly been an honor to lead such a great company with so many exceptional people, and I am excited about Constellis’ future with Terry at the helm,” Reardon said in a statement. “I have great confidence that Terry’s leadership, vision and industry experience will lead to continuing success.”
Founded in 2010, Constellis employs 24,000 people and provides risk management, security, training and operational support in 40 countries.
Reardon joined Constellis in August 2018 after serving as president of defense and intelligence for the Reston-based Leidos.
“I want to thank Tim for his leadership and relentless commitment to supporting our mission partners and dedicated employees, especially over this past year of the pandemic,” Ryan said in a statement. “As CEO, Tim successfully led the company through a financial restructuring and corporatewide integration of multiple business entities. These significant accomplishments have enhanced the company’s position for future growth and success.”
Ryan has more than 20 years of experience and has previously served as CEO of Adroit Systems, VTG and Tenax Aerospace. He has also held executive positions at SAIC, Mercury Systems and ManTech International.
Before his time in federal contracting, he held several positions with the federal government and served as a Marine Corps infantry commander and intelligence officer. He is a graduate of The Ohio State University and National Intelligence University. Ryan serves on the board of the National Intelligence University Foundation.
The Virginia Society of Association Executives announced Monday it has appointed Christina Lewellen to serve on its board of directors.
VSAE was founded in 1949 and currently has more than 400 members who are association executives, association management companies, hospitality industry representatives and others from the association industry.
Lewellen is the executive director of the Winchester-based Association of Technology Leaders in Independent Schools. She replaces Katie Newland, executive director of ACG National Capitol, who stepped down from the board in December 2020.
“On behalf of the VSAE Board of Directors, we thank Katie for her many years of service to VSAE and wish her all the best,” VSAE President Phyllis Errico said in a statement. “We also welcome Christina to the board. She brings significant experience as an association chief executive and a volunteer leader on several non-profit boards. She also provides a valuable point of contact to VSAE’s growing member base in the northern region.”
VSAE’s offers a community for association executives seeking collaboration, education and professional growth.
The relief loan floodgates will reopen Tuesday, as the U.S. Small Business Administration opens the latest $284.5 billion round of Paycheck Protection Program (PPP) funding available.
This time, borrowers who received allocations during the initial rounds of PPP funding in 2020 can reapply under Second Draw PPP Loan applications. First Draw PPP Loans are for borrowers who had not received a loan before Aug. 8, 2020, while the Second Draw PPP Loans are for eligible businesses with 300 or fewer employees.
PPP loans are aimed at helping small businesses meet payroll costs and make mortgage interest, rent and/or utilities payments due to the economic crisis caused by the COVID-19pandemic.
Eligible Second Draw PPP Loan borrowers must demonstrate at least a 25% drop in gross receipts between comparable quarters in 2019 and 2020, and second-round loans are capped at $2 million. While this will be the first round in which PPP recipients can apply for a second round, Ryan Losi, executive vice president of CPA firm Piascik, told Virginia Business in December 2020 that the requirement to show a drop in revenue could disqualify some small businesses seeking additional funding.
“That’s going to eliminate a lot of businesses that have basically been able to sustain, or have even prospered, during this time,” he said. Andrew Lohmann, an executive vice president of Richmond-based law firm Hirschler, also advises businesses interested in applying for a Second Draw Loan to carefully review 2019 and 2020 financial records.
“Be aware that gross receipts doesn’t necessarily translate to gross revenue or net income — it’s a test that’s based on existing SBA standards,” he says. “In the second half of 2020 there was a fair amount of merger and acquisition activity, and borrowers are advised to look at how the … new Second Draw PPP will apply to how you calculate gross receipts, either based on acquisitions that a borrower has made or dispositions the company has made during 2020.”
With the application portal set to reopen Tuesday, banks are prepared to take on another round of PPP loan requests.
“While it is difficult to predict with certainty, we are anticipating strong demand for this next round of PPP based on inbound inquiries and conversations with our clients,” says Atlantic Union BankCEO John Asbury. “Building off what we learned in 2020, Atlantic Union Bank has made all the necessary preparations to best manage this new round of PPP loans for both our current and new customers.”
Asbury encourages small businesses to “continuously check” the bank’s PPP page for updated information about the current round of funding.
Lohmann, however, doesn’t expect demand to be as high for Second Draw applicants. “I’ve heard fewer companies, fewer clients talking about taking advantage of the Second Draw, either because they have weathered the storm or unfortunately the second round came too late,” he says.
Despite difficulties opening its application portal on time during the initial rounds of PPP funding, McLean-based Capital One Financial One Corp. (Virginia’s largest bank) announced its plans to accept applications starting Tuesday.
“Capital One is committed to supporting our small business customers during this challenging time and will participate in the next round of PPP loans,” according to a Capital One statement. “We will begin accepting PPP loan applications on Tuesday, Jan. 19, 2021, when the SBA portal opens to large banks.”
Of the original PPP round that closed last summer, 5.2 million applicants nationwide received $525 billion in loans as of Aug. 8, 2020. The initial round of funding was split between two iterations during spring and summer 2020.
“A second round of PPP could not have come at a better time, and the SBA is making every effort to ensure small businesses have the emergency financial support they need to continuing weathering this time of uncertainty,” SBA Administrator Jovita Carranza said in a statement. “SBA has worked expeditiously to ensure our policies and systems are relaunched so that this vital small business aid helps communities hardest hit by the pandemic.
“I strongly encourage America’s entrepreneurs needing financial assistance to apply for a First or Second Draw PPP loan.”
Loan recipients must apply for forgiveness through their PPP lender, compile data including payroll and non-payroll costs and submit all information to the lender, according to the SBA. Businesses that had loans of $50,000 or less can fill out a more streamlined application, the SBA announced in early October.
Four industrial buildings in Spotsylvania County sold for $14 million and will be redeveloped into an apartment complex, Cushman & Wakefield | Thalhimer announced Monday.
The 495,830-square-foot, four-building Fredericksburg Industrial Park is located at 11800-11900 Main Street and 10857 Houser Drive in Spotsylvania County. Monument Cos. plans to redevelop the property into 525 one- and two-bedroom apartments with 14,000 square feet of commercial space, according to Cushman & Wakefield | Thalhimer.
Monument Development Fifteen LLC purchased the properties from Acorn Capital Co. LC as an investment.
Further details about the redevelopment have yet to be released. Virgil G. Nelson of Cushman & Wakefield | Thalhimer handled the sale on behalf of the seller.
Foundation Building Materials LLC leased 25,259 square feet of industrial space at 14920-14970 Farm Creek Drive in Woodbridge. Virgil G. Nelson of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the tenant.
Johnson Roofing Systems Inc. expanded and renewed its lease of 6,000 square feet of industrial space at 230 Industrial Drive in Spotsylvania County. Virgil G. Nelson of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Central Virginia
CHEP USA renewed its 54,000-square-foot lease at 12600 Bermuda Triangle Road in Chester. Franklin Bell of Colliers International represented the landlord.
Old Dominion Warehouse & Distribution leased 32,000 square feet of industrial space at 3721 Jefferson Davis Highway in Chesterfield County. Evan Magrill of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the tenant.
American Door and Glass signed a new 21,450-square-foot lease at 1951 Reymet Road in Chesterfield. Rob Dirom and Jimmy Martin of Colliers International represented the tenant.
The Lighting & Sound Co. LLC leased 20,694 square feet of industrial space at 4200-4222 Sarellen Road in Henrico County. Evan Magrill of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Ace Hardware has leased 10,130 square feet of retail space at 1 Dunlop Village in Colonial Heights. Reid Cardon and Nathan Shor of S.L. Nusbaum Realty Co. represented the tenant.
The Prop Shop has leased 9,790 square feet of industrial space at 3407 Carlton St. in Richmond. Reid Cardon and Nathan Shor of S.L. Nusbaum Realty Co. represented the landlord.
Virginia Alcoholic Beverage Control Authority leased 9,758 square feet of retail space at 4118 West Broad St. in Henrico County. Annie O’Connor and Pamela H. Strieffler of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Babylon Micro Farms Inc. has leased 7,600 square feet of industrial space at 3409 Carlton St. in Richmond. Reid Cardon and Nathan Shor of S.L. Nusbaum Realty Co. represented the landlord.
RVA Iron Gym leased 7,500 square feet of industrial space located at 3910 Adams Road Richmond. John Madures of Divaris Real Estate represented the landlord in the lease negotiations.
YWCA has leased 7,416 square feet of office space at 306 E. Main St. in Richmond. Zach Brenner and Nathan Shor of S.L. Nusbaum Realty Co. represented the landlord.
Code Blue Technology has leased 6,000 square feet at 9204 Center Oak Court in Mechanicsville. The landlord is Hayden Enterprises LLC and John Jay Schwartz with Have Site Will Travel & The Man With Square Feet represented the parties.
Seven Pines Dental Group leased 5,405 square feet at 4501 S. Laburnum Ave. in Richmond. Harrison Hall, Peter Vick and Maddy Spear of Colliers International represented the landlord.
Hibbett Sporting Goods Inc. leased 5,300 square feet of retail space at Southgate Square, 44-100 Southpark Blvd.. in Colonial Heights. Alicia Brown and Reilly Marchant of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Eastern Virginia
Funstuff, Inc. expanded its lease by 4,120 square feet for a total of 57,742 square feet of industrial space at 2513 58th St. in Hampton. Clay Culbreth of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Wayne’s Home has leased 25,132 square feet at 1543 Sam’s Circle in Chesapeake. Chris Devine and Seth Norman of S.L. Nusbaum Realty Co. provided tenant representation services in this transaction.
Tidewater Physicians Multispecialty Group PC (TPMG) leased 23,260 square feet of retail space at 4421 Virginia Beach Blvd. in Virginia Beach. David Machupa and Eric Stanley of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Sushi King renewed its lease for 15,150 square feet of retail space at 4027 East Little Creek Road in Norfolk. George Fox of Divaris Real Estate represented the landlord in the lease negotiations.
IEH Auto Parts Inc. renewed its lease of 15,000 square feet of industrial space at 1320 Ingleside Road in Norfolk. Robert M. Thornton of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Staples Contract & Commercial Inc. renewed its lease of 14,670 square feet of industrial space at 3800 Village Ave. in Norfolk. Geoff Poston and Janet Whitbeck of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
DoorDash Essentials leased 12,480 square feet of office/warehouse space at 2733 Ayliff Road in Norfolk. Geoff Poston of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord. Christine M. Kaempfe also with Thalhimer, represented the tenant.
Tidewater Gastroenterology PLLC renewed their lease of 8,656 square feet of office space at 112 Gainsborough Square in Chesapeake. Christine M. Kaempfe of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Three Notch’d Craft Kitchen & Brewery has leased 7,897 square feet of retail space at The Town Center of Virginia Beach in Virginia Beach. Chris Hucke and Neal Sadler of S.L. Nusbaum Realty Co. represented the tenant.
Convert Solar leased 7,700 square feet of industrial space at 5770 Thurston Ave. in Virginia Beach. Geoff Poston of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord; Brett Sain, also with Thalhimer, represented the tenant.
Elite Auto Club LLC leased 6,850 square feet of industrial space at 3545 Victory Blvd. in Virginia Beach. Tom Dana of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Konika Minolta Business Solutions USA renewed its lease of 6,566 square feet of office space at 277 Bendix Road in Virginia Beach. Christine M. Kaempfe of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the tenant.
Uptown Cheapskate leased 6,000 square feet of retail space at 2137 Upton Drive in Virginia Beach. David Crawford of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the tenant.
Carter Iron and Steel Co. leased 5,779 square feet of industrial space at 406 Industry Drive in Hampton. Clay Culbreth of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Antech Systems renewed its lease for 5,028 square feet of office space at 501 Independence Parkway in Chesapeake. Brian Devlin of Divaris Real Estate represented the landlord in the lease negotiations.
Commonwealth Catholic Charities leased 5,026 square feet of office space at 740 Thimble Shoals Blvd. in Newport News. Teresa Nettles of Cushman & Wakefield | Thalhimer handled the lease negotiations on behalf of the landlord.
Southwest Virginia
American Freight Furniture leased 25,804 square feet of retail space at 1335 West Main St. in Salem. Ali McCrickard, Brett McNamee and Sam McCoy of Divaris Real Estate represented the landlord in the lease negotiations.
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