Business
Spectra Premium announces the signature of an agreement in principle to proceed with a $44 million sale and leaseback transaction
Spectra Premium announces the signature of an agreement in principle to proceed with a $44 million sale and leaseback transaction.
About this update from Silver Predator Corp
[{"type":"text","content":"\n\n\n\n\nBOUCHERVILLE, April 28 /CNW Telbec/ - Spectra Premium Industries Inc.\n(TSX: SPD.sv), a North American leader in the manufacture of automobile, light-\ntruck and heavy-duty truck aftermarket parts and manufacturer of high-pressure\ndie cast magnesium alloy parts and steel fuel tanks in the Original Equipment\nManufacturer (\"OEM\") market, announces the signature of an agreement in\nprinciple to proceed with a $44 million sale and leaseback transaction\ninvolving an overseas institutional investor and GE Commercial Finance.\nThis transaction covers the buildings located in Boucherville and Laval.\nBy virtue of this agreement, Spectra Premium will sell these two buildings for\na total amount of $44 million and sign 20-year leases for each of these\nbuildings. The proceeds from the sale of these buildings will be entirely used\nto reduce the bank indebtedness of Spectra Premium.\n\"This transaction will have a very positive impact on our balance sheet\nand will provide additional financial flexibility of which we will benefit\nfrom. This transaction will also facilitate the financing of our current and\nfuture expansion plans,\" indicated Mr. Denis Poirier, CA, Executive Vice-\nPresident and Chief Financial Officer of Spectra Premium.\nIn terms of impact on income, the gain of about $5 to $6 million\nresulting from the disposal of these buildings will be amortized on the lease\nterms. In addition, the transaction will result in a reduction of annual\ninterest, amortization and capital tax expenses that will exceed by\napproximately $750,000 the amount of additional rent expenses reduced by the\namortization of the gain on disposal.\nThis transaction is conditional upon a customary due diligence audit and\napproval from the banking syndicate of Spectra Premium and is scheduled to\nclose around June 1st, 2005.\n\nPROFILE\nSpectra Premium is the world leader in the manufacture of steel fuel\ntanks and related components for the automobile and light-truck aftermarkets.\nThe Corporation ranks first in Canada and is a North American leader in the\naftermarket for automotive and industrial radiators, radiator components and\nnew and reconditioned oil pans. It also maintains a presence in such markets\nas sending units, fuel pumps, body panels, condensers, compressors, complete\nheater cores and other air-conditioning parts. Ove...