Educational Development Corporation Announces Sale and Leaseback Agreement of Headquarters and Warehouse Facility
Educational Development Corporation Announces Sale and Leaseback Agreement of Headquarters and Warehouse Facility
Tulsa, Oklahoma--(Newsfile Corp. - June 12, 2024) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", the "Company" or "Seller") () today announced that on June 6, 2024, it executed a Commercial Real Estate Contract ("Contract") with Rockford Holdings ("Rockford" or "Buyer") for the sale of the Company's headquarters and distribution warehouse located at 5400-5402 South 122nd East Avenue, Tulsa, Oklahoma 74146 (the "Hilti Complex").
俄克拉荷馬州塔爾薩市- (新聞發佈公司-2024年6月12日)- 教育發展公司(NASDAQ: EDUC)(“EDC”,“公司”或“賣家”)()今天宣佈,於2024年6月6日與Rockford Holdings(“Rockford”或“買方”)簽署了商業房地產合同(“合同”) ,出售公司位於塔爾薩市122東南大道5400-5402號的總部和分銷倉庫(“Hilti Complex”)。nd根據簽署的合同,Hilti Complex的出售價格總計爲35,500,000美元。出售收入將用於償還與公司銀行的信貸協議中的逾期短期貸款和循環貸款。在交割時,EDC將向買方轉讓現有的Hilti租賃協議,並將在Hilti Complex中佔用的空間簽署單獨的三重租賃(“Lease”)。銷售協議不包括與Hilti Complex相鄰的多餘土地,該土地將繼續歸屬於EDC的所有權。
The agreed upon sale price of the Hilti Complex per the executed Contract totaled $35,500,000. The proceeds from the sale will be utilized to pay off the Term Loans and Revolving Loan outstanding in the Credit Agreement with the Company's Bank. At closing, EDC will assign the existing Hilti tenant lease to the Buyer and will execute a separate Triple-Net Lease (the "Lease") for its occupied space in the Hilti Complex. The sale agreement does not include the excess land parcel adjacent to the Hilti Complex which will remain under the ownership of EDC.
"我們最近宣佈了與Hilti Complex 110,000可用平方英尺的新租賃協議。"教育發展公司總裁兼首席執行官Craig White說。 "這份新租賃協議,連同我們與Hilti的現有租賃,提高了Hilti Complex的財務實力和營銷能力。如前所述,出售Hilti Complex並減少借款符合我們股東的最佳利益,並且我們預計將來的工作資本借款將有限。減少借款所節省的利息將超過我們的月度租金支付,我們將不再有每月的抵押貸款付款,這將立即改善我們的財務績效。這種現金流改善以及我們最近宣佈的約佔我們空間一半的租賃協議,將有益於我們的月度現金流。我們還預計,由於將我們的多餘庫存變現,我們的運營現金流將在未來幾年非常強勁。"
"We recently announced a new lease agreement for 110,000 available square feet in the Hilti Complex. This new lease, along with our existing lease with Hilti, improved the financial strength and marketing ability for the sale the Hilti Complex," said Craig White, President and Chief Executive Officer of Educational Development Corporation. "As previously mentioned, selling the Hilti Complex and reducing our borrowings is in the best interest of our shareholders, and we expect to have limited working capital borrowings going forward. The interest saved on the reduced borrowings will exceed our monthly rental payments and we will no longer have monthly mortgage payments, providing an immediate improvement to our financial performance. This cash flow improvement, along with our recently announced lease agreement for approximately half of our space, will have a positive benefit on our monthly cashflows. We also expect our cashflow from operations to be very strong in the upcoming years as we convert our excess inventory into cash."
Complex由多幢建築物組成,總共提供402,000平方英尺的可租用辦公室和倉庫空間,佔地34英畝。 Hilti Complex的約183,800平方英尺由Hilti按照15年租賃協議佔用,該協議將在合同結束時轉讓給買方。公司將簽署新租賃協議的剩餘218,200平方英尺,並保留最近簽署的約佔110,000平方英尺的租賃/分租協議爲期5年。此外,銷售合同不包括多餘的土地,包括Hilti Complex相鄰的約16.75英畝未開發土地,該土地將繼續歸EDC所有。
The Complex consists of multiple buildings totaling 402,000 square feet of rentable office and warehouse space on 34-acres. Approximately 183,800 square feet of the Hilti Complex is occupied by Hilti under a 15-year lease which will be assigned to the Buyer at the Contract close. The Company will execute a new lease for the remaining 218,200 square feet and will retain the recent lease/sub-lease for approximately 110,000 square feet under a 5-year term. In addition, the sale Contract does not include the excess land parcel, consisting of approximately 16.75 acres of undeveloped land adjacent to the Hilti Complex, which will remain under the Company's ownership.
根據合同條款,買方將有60天的盡職調查期,自6月6日開始,包括必要的調查、檢查和審查。合同的結算將在盡職調查期之後的30天內完成。合同不包含融資條款。
Per the terms of the Contract, Buyer will have 60 days to complete due diligence, commencing June 6th, including necessary investigations, inspections, and reviews. The closing of the Contract is to be completed 30 days after the due diligence period. The Contract does not contain a financing contingency.
公司租賃的期限爲10年,初始租金爲每平方英尺8.72美元,租金年遞增2%,從租賃第六年開始。租賃還將包括三重淨租金條款,賣方將負責公用事業、保險、房產稅和常規維護,不包括屋頂和結構性維護,這將由買方負責。此外,該公司在租賃期內保留在建築物中出租任何可用未使用空間的權利。租賃還將包括當地市場慣例的其他標準條款。
The terms of the Company's lease will be 10 years and the initial lease rate will be $8.72 per square foot, with 2% annual escalations beginning in year six of the lease. The Lease will also include triple-net terms, where the Seller will be responsible for utilities, insurance, property taxes, and regular maintenance, excluding roof and structural maintenance, which will be the Buyer's responsibility. Additionally, the Company retains the rights to sublease any available unused space in the building during the lease term. The Lease will also encompass other standard terms that are customary in the local market.
公司租賃的期限爲10年,初始租賃率爲每平方英尺8.72美元,從租賃的第六年開始每年增長2%。租賃也將包括三重淨租條款,賣方將負責公用事業、保險、物業稅和一般維護,不包括屋頂和結構性維護,這將由買方負責。此外,公司保留在租期內子租任何可用的未使用空間的權利。租賃還將包括當地市場上通常慣用的其他標準條款。
About Educational Development Corporation (EDC)
有關教育發展公司(EDC):
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
EDC成立於出版兒童書籍的公司。EDC是Kane Miller Books(“Kane Miller”)的所有者和獨家出版商;Learning Wrap-Ups(製造教育操縱工具)的製造商;以及SmartLab Toys(製造基於STEAM的玩具和遊戲)。EDC還是Usborne Publishing Limited(“Usborne”)兒童書籍的獨家美國多層次營銷經銷商。EDC擁有的產品通過4,000家零售店銷售,EDC和Usborne的產品由獨立品牌合作伙伴提供,他們通過社交媒體上的書展,與學校和公共圖書館舉辦的書展,單獨的家庭,以及其他現場活動和互聯網銷售等方式進行銷售。
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
聯繫方式:
教育發展公司
克雷格·懷特(918)622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser (214) 872-2710
投資者關係:
Three Part Advisors,LLC
Steven Hooser(214)872-2710