What is a propco and OpCo?
The OpCo/PropCo structure comprises two special purpose vehicles, a PropCo (i.e., property company), which holds the real estate interests of the hotel, and an OpCo (i.e., operational company), which holds all other assets of the hotel, such as rights to key hotel contracts, licences, etc.
What does OpCo mean?
What Is an Opco? Opco is the abbreviation for “operating company,” typically used when describing the primary operating company involved in an opco/propco deal, which is the most common structure for spinning off a real estate investment trust (REIT).
What is OpCo and HoldCo?
What is a HoldCo / OpCo structure? A HoldCo / OpCo structure is simply one where we have a series of operating companies – often either diverse in the countries they operate in or with each OpCo being dedicated to one major corporate project – and a HoldCo that owns (holds) the equity of these operating companies.
What is an OpCo meeting?
Opco Meeting means the special meeting, including any adjournments or postponements thereof in accordance with the terms of this Agreement, of the Opco Shareholders to be held to consider, among other things, and, if deemed advisable, to approve, the Opco Arrangement Resolution and for any other purpose as may be set …
What is propco closing?
If a business works out of multiple locations rather than a primary one, a propco arrangement locks the company into a situation where closing any location becomes more difficult.
What does Holdco stand for?
By contrast, a holding company, or holdco, is a behind-the-scenes corporation that holds usually 100% of the shares in one or more opcos. Rather than carrying out active business, the holdco allows for an opco’s shareholder(s) to make the most of the opco’s dividends, taxes, etc.
What is a non operating company?
non-operating holding company means a holding company whose only business is the acquiring, holding and managing of another company or other companies. Sample 1.
What are Holdco Notes?
Holdco Notes means the floating rate senior unsecured notes issued by the Parent pursuant to the HoldCo Indenture, any exchange notes issued in connection with any registration of such notes, and any additional floating rate senior unsecured notes issued by the Parent as payment of interest.
What is the difference between a holding company and an operating company?
An operating company is responsible for the day-to-day management of the business. It is often the subsidiary of the holding company. A holding company owns a company’s assets (such as intellectual property, stock and equipment used by the operating company, real estate).
What does a propco do?
A propco is a subsidiary company created specifically by a parent company or opco to hold and manage its income-generating real estate. These arrangements are almost always pursued to secure more favorable financing and ease credit rating issues.