Citizens Bank, Mass. team to make low-interest loans
THE REGION
Citizens Bank said it would establish a $25 million pool to lend money at low interest rates to people who attend financial education classes. The bank established a partnership with Massachusetts Treasurer Timothy P. Cahill. Massachusetts residents are eligible if they make less than 80 percent of the median income in their communities. An eligible single home buyer in Boston, for example, would have to make less than $57,820. Interest rates for the program start at about 5 percent, which is about 1 percentage point below market rates. The rates will increase if conventional mortgage rates rise. The bank will receive $100 million in state deposits from the treasurer's office. The bank said the loan pool is part of a broader $75 million effort to support homeownership, small business, and new immigrants. (Sasha Talcott)
Investment group acquires Quincy's Marina Bay
A private investment group led by Jeffrey J. Rhodes of Wynnewood, Pa., has purchased a portfolio of six marinas in several states, including Marina Bay in Quincy, along with Flagship Marinas management company of Dallas for an undisclosed amount. The group includes Kenneth A. Himmel, president of Related Urban Development of New York, who along with Rhodes developed Copley Place in Boston in the early 1980s. The sellers were Whitehall Real Estate Funds, managed by Goldman Sachs. A newly created company, Flagship Marinas Acquisitions LLC, will now own or operate 14 marinas nationwide, with more than 10,000 slips. (Thomas C. Palmer Jr.)
Bain Capital to buy CRC Health Group for $720m
Bain Capital, a Boston venture capital and buyout firm, agreed to buy CRC Health Group for $720 million, adding an operator of drug and alcohol treatment centers to its list of more than 25 healthcare investments. The sale is the largest ever for Greenwich, Conn., buyout firm North Castle. CRC, based in Cupertino, Calif., runs more than 90 treatment centers in 22 states. The deal is expected to close next year. (Bloomberg)
Waters cuts earning, sales estimates for 3d quarter
Waters Corp. lowered its third-quarter earnings and sales projections, citing lower-than-expected US instrument sales to large pharmaceutical accounts. The Milford maker of scientific instruments attributed the sales shortfall to delays in the evaluation of new products and the release of capital budgets. Waters now anticipates reporting net income of 43 cents a share, down from July guidance of 47 cents. (Dow Jones)
THE NATION
Acquiescing to Wall Street, company alters way it files
Bending slightly to the ways of Wall Street, online search engine leader Google will expand its quarterly financial results to include an earnings figure that differs from mandated accounting practices. The move, disclosed on Google's weblog, is designed to clear up recent confusion about whether the rapidly growing company's profits are living up to analyst expectations. Google will list its pro forma earnings -- essentially what its profit would have been if not for a recurring charge for stock-based employee compensation that's unrelated to its ongoing operations. Google also will continue to report its earnings under GAAP, the generally accepted accounting principles that include all the special charges. (AP)
Regional airline Mesaba victim of Northwest woes
Regional carrier Mesaba Airlines followed Northwest Airlines into bankruptcy, a victim of Northwest's cuts as the big airline shrinks to try to fix its own financial problems. Mesaba parent, MAIR Holdings, said the bankruptcy was prompted by ''cash shortages and significant fleet changes and uncertainties imposed on it by Northwest Airlines," which is Mesaba's only customer. Mesaba's schedule, passengers, and planes all come from Northwest. Flying under the Northwest Airlink name, Mesaba ferries passengers between Northwest hubs and outposts around the upper Midwest, where it is often the only air carrier. (AP)
Electrical problem forces recall of Prius hybrids
Toyota Motor Corp. said it is recalling 75,000 Prius gas-electric hybrid cars because their engines can stall due to an electrical problem. Involved are some 2004 and early 2005 models. Dashboard warning lights may come on and the gas engine shuts down. The vehicle's electric motor will continue operating in a limited capacity, so drivers can steer to the side of the road. The gasoline engine may start working again if the vehicle is restarted. A Toyota spokesman said the automaker began investigating the problem after the National Highway Traffic Safety Administration received 68 reports of Prius engines stalling. (AP)
