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According to SEC filings (excerpt below),
National RV Holdings, Inc. has completed the sale of its Perris
manufacturing facility. The deal
was announced earlier by NVH.
"On May 22, 2007,
National R.V. Holdings, Inc. (the “Company”) completed the sale of its
Perris, California manufacturing facilities (the “Property”) to First
Industrial Acquisitions, Inc., a Maryland Corporation (“First
Industrial”), for a purchase price of approximately $31.8 million. In
connection with the sale of the Property, the Company, through its
wholly-owned subsidiary National RV, Inc. (“NRV”), entered into a
triple-net lease with First Industrial for the Property for an initial
term of ten years with two five-year renewal options. The lease
provides for approximately $2.7 million in annual lease payments,
increasing 3% annually. The sale and leaseback were conducted pursuant
to a Purchase and Sale Agreement entered into on December 27, 2006 by
the Company and First Industrial and subsequent amendments thereto.
The transaction is
part of the Company’s continuing effort to restructure its finances and
provide the capital resources to support the turnaround of the NRV
subsidiary. The proceeds will be used to pay off the line of credit,
eliminate vendor interest charges, take vendor offered discounts in
order to improve margins and fund the capital required to consolidate
operations and provide working capital to support the turnaround effort.
The Company
collected $31.1 million in net proceeds from the sale and leaseback
transaction, used $11.5 million to pay off its line of credit, deposited
$7.5 million in a restricted cash account for the benefit of Wells Fargo
Bank, used $1.3 million to reduce vendor payables to eliminate vendor
interest charges plus take vendor discounts and deposited $10.8 million
into the Company’s treasury. The sale resulted in a deferred gain of
$12.0 million that will be amortized over the 10-year lease." |
