Tree Island Steel Announces Agreement to Sell and Leaseback Etiwanda Facility
15 Dec 2021 08:00 ET
GlobeNewswire
Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX: TSL) announced today an agreement (the "Sale Agreement") by the Company to sell its Etiwanda facility located in Rancho Cucamonga, California, US ("Etiwanda Facility") for gross proceeds of US$55.3 million (the "Sale").
Tree Island Wire (USA), Inc., an indirect wholly-owned subsidiary of the Company and the registered owner of the Etiwanda Facility, entered into the Sale Agreement with Newcastle Partners, Inc. ("Newcastle") pursuant to which the Company will sell the Etiwanda Facility to Newcastle for US$55.3 million, subject to customary closing adjustments. The Sale is subject to a number of customary closing conditions for a transaction of this nature and is expected to close on or about December 17, 2021.
On closing of the Sale, the Company will lease back the Etiwanda Facility by entering into a two-year commercial lease agreement with Newcastle.