Transactions - APRIL 10, 2020

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Big Lots announces $725m sale-leaseback agreement

by Andrea Zander

Big Lots has entered into sale and leaseback agreements with affiliates of Oak Street Real Estate Capital relating to the company's distribution centers in Columbus, Ohio; Durant, Okla.; Montgomery, Ala.; and Tremont, Pa.

The portfolio totals approximately 7.5 million square feet. Big Lots will continue to occupy the distribution centers under long-term, absolute net leases.

Gross proceeds from the transactions are expected to be $725 million. Net of expenses and taxes, the company expects to receive estimated net proceeds of approximately $550 million.

The company intends to use the net proceeds from the sale-leaseback transactions to fully pay down debt on its revolving credit facility, provide additional liquidity and, when market conditions normalize, for other corporate purposes including investments in growth initiatives and potential share repurchases pursuant to future authorizations from the company's board of directors.

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