~Sale and leaseback frees cash, reduces debt, and secures facility~
VANCOUVER, CANADA, May 8, 2017 /CNW/ - Avigilon Corporation ("Avigilon" or the "Company") (TSX: AVO), provider of trusted security solutions, today announced that it has entered into an agreement to sell the Company's downtown Vancouver office tower and associated land (the "Building") for expected gross proceeds of approximately CAD $107.5M (the "Transaction"). Avigilon will lease back the Building, thereby securing its facility needs while reducing its debt, providing cash for general working capital purposes, and enhancing shareholder value.
"We're very pleased with the investment we made in the Building," said Alexander Fernandes, Avigilon's Founder, President, Chief Executive Officer and Chairman of the Board. "The Transaction unlocks over $100 million in cash, will substantially reduce our debt, and secures a state-of the-art facility to support our growing business."
Avigilon purchased the Building in November 2015 for CAD $42M. Renovations on the Building are nearing completion, and Avigilon expects to move in Q2 2017.
The Transaction is subject to certain conditions that are typical for a transaction of this nature, including completion of the purchaser's due diligence, completion of applicable filings under the Competition Act (Canada), satisfaction of Avigilon's obligations under its credit facility, and finalization of the terms of the Building lease.
About Avigilon
Avigilon Corporation provides trusted security solutions to the global market. Avigilondesigns, develops, and manufactures video analytics, network video management software and hardware, surveillance cameras, and access control solutions. To learn more about Avigilon, visit avigilon.com.
© 2017, Avigilon Corporation. ™ indicates a trademark of Avigilon Corporation. Other marks referred to herein are the property of their respective owners.
For further information:
Investor Enquiries:
Darren Seed
Vice President, Capital Markets & Communications
T: (604) 629-5182
investors@avigilon.com
Media Enquiries:
Amy Day
Manager, Global Communications
T: (604) 629-5182 x2625
media@avigilon.com