© Nortech Systems Electronics Production | August 28, 2020
Nortech Systems completes sale and leaseback of facility
Nortech Systems says it has completed the sale and leaseback transactions for its manufacturing facilities in Bemidji and Mankato, Minnesota at a sale price of USD 6.3 million.
The proceeds from the sale will be used to pay down debt as well as related expenses and taxes. In connection with the closing on the sale, Nortech entered into long-term lease agreements for the Bemidji and Mankato, Minnesota facilities for an initial 15-year term, with multiple renewal options. "We are pleased with the successful execution of this sale and leaseback transaction which generated significant net cash proceeds. Following the debt repayment, Nortech’s balance sheet and working capital is positioned for investments in capital equipment and strategic initiatives," stated Jay D. Miller, Chief Executive Officer and President.