Invacare sells, then leases back, properties
ELYRIA, Ohio – Invacare has secured $23 million in a sale and leaseback transaction. The company has sold and leased back under long-term leases five of its properties located in Ohio and Florida. The net proceeds from the transaction will be used to reduce debt on the company’s revolving asset-based credit facility, according to a press release. ''We are pleased that we have completed this sale and leaseback transaction, which is part of our ongoing plan to proactively manage cash and debt in our current environment,” stated Matthew Monaghan, president and CEO, in a press release. “This transaction will not affect our day-to-day operations, but it does allow us to strengthen our balance sheet and address the current cash needs of the business.” The total annual rent for the properties will be $2.275 million for the first year and will increase annually over the 20-year term of the leases based on the applicable geographical consumer price index.