Big Lots makes $318m sale and leaseback agreement with Blue Owl Capital

Big Lot has entered into a sale and leaseback agreement with affiliates of Blue Owl Capital relating to the company’s distribution center in Apple Valley, Calif., and 26 owned store locations, in a $318 million deal.

The company intends to use $100 million of the net proceeds from the sale and leaseback transaction to fully pay down its synthetic lease on the Apple Valley distribution center, and to use the remainder of the net proceeds to pay down debt on its asset-based lending revolving credit facility.

“We are pleased to have reached a definitive agreement with Blue Owl for the sale and leaseback of our Apple Valley distribution center and the vast majority of our remaining owned stores,” said Bruce Thorn, president and CEO of Big Lots. “As we discussed on our first quarter earnings call, we are highly focused on ensuring we have plenty of liquidity to get through this period of macroeconomic challenges, and monetizing these assets is a significant step for