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From Home Furnishing Business
Big Lots Announces Sale & Leaseback for Center & Stores in CA
July 5,
2023 by HFBusiness Staff in Business Strategy, Industry 
Big Lots, Inc. today announced that it has entered into a sale and leaseback agreement with affiliates of Blue Owl Capital relating to the company's distribution center in Apple Valley, CA, and 26 owned store locations. The company previously disclosed that it had entered into a Letter of Intent on May 24, 2023.
In addition to the distribution center and owned stores, it contemplated a sale and leaseback of the company's corporate headquarters that has subsequently been excluded from the definitive agreement. The sale and leaseback transaction are scheduled to close within 45 days, subject to continued due diligence, final documentation, and other customary closing conditions.
Gross proceeds from the transaction are expected to be $318 million. Net of expenses and taxes, the company expects to receive estimated net proceeds of approximately $310 million.
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.
Commenting on the announcement, Bruce Thorn, president and CEO of Big Lots stated, "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.”
“As we discussed on our Q1 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 forward in ensuring such liquidity.”
Thorn concluded, “Blue Owl has been a good partner on our other regional distribution centers, which we sold and leased back in 2020, and we look forward to furthering our relationship through this transaction."