Business
Yunhong CTI Ltd. Announces Closing of Sale-Leaseback Transaction and Forbearance Agreement with Lender
LAKE BARRINGTON, IL / ACCESSWIRE / May 10, 2021 / Yunhong CTI Ltd. (Nasdaq:CTIB) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film
About this update from Yunhong Green Cti Ltd.
[{"type":"text","content":"LAKE BARRINGTON, IL / ACCESSWIRE / May 10, 2021 / Yunhong CTI Ltd. (Nasdaq:CTIB) (\"Yunhong CTI\" or the \"Company\"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, today announced that it has completed a sale-leaseback transaction for its headquarters office, production and warehouse space in Lake Barrington, Illinois (the \"Lake Barrington Facility\"), for a total sale price of $3,500,000, consisting of $2,000,000 in cash and a promissory note with a principal amount of $1,500,000, due and payable on May 3, 2021 (the \"Purchaser Promissory Note\"). The transaction closed on April 29, 2021. The Purchaser has since repaid the Purchaser Promissory Note in full. The Company will continue to occupy the facility pursuant to a market-based long-term lease.Net cash proceeds from the sale-leaseback transaction were used to repay indebtedness under the Company's term loan, which has been repaid in full.The Company also announced that concurrently with the closing of the sale-leaseback transaction and lease, the Company entered into a forbearance and amendment agreement (the \"Amendment Agreement\") with respect to its Revolving Credit, Term Loan and Security Agreement (the \"Loan Agreement\") with PNC Bank, National Association and its participating lenders (collectively, the \"Lender\"). Under the terms of the forbearance agreement, the Lender consented to the sale-leaseback and lease, as required under the Loan Agreement. Pursuant to the Amendment Agreement, the Company agreed that the full $2,000,000 cash proceeds from the sale of the Lake Barrington Facility would be applied to repay the $2,000,000 term loan owed to the Lender pursuant to the Loan Agreement. The Company further agreed that $1,500,000 in proceeds from the Purchaser Promissory Note will be applied to amounts due and owing to the Lender under the revolving credit facility provided pursuant to the Loan Agreement. Pursuant to the Amendment Agreement, the Lender agreed to forbear from exercising its rights and remedies with respect to various events of default under the Loan Agreement.\"We are very pleased to announce the closing of this sale-leaseback transaction, which generated meaningful net cash proceeds for debt repayment,\" said Jana Schwan, Chief Operating Officer of Yunhong CTI. \"In addition, we...