DATA Communications Management Corp. Completes Sale and Leaseback of its Oshawa, Ontario Warehouse Facili
Benzinga DATA Communications Management Corp. DCMDCMDF("DCM" or the "Company"), a leading provider of marketing and business communication solutions, today announced it has closed the previously announced sale and leaseback of its Oshawa, Ontario warehouse facility, which was acquired as part of the Company's acquisition of Moore Canada Corporation ("MCC").
Gross proceeds realized on the sale were $24.1 million, and, after deducting closing commissions, rent deposit, and other expenses, net proceeds of $23.1 million have been applied towards the $30 million balance outstanding on the Company's term loan with a Canadian chartered bank. The term loan had been entered into in connection with financing of the MCC acquisition.
DCM intends to use the Oshawa facility as a primary warehousing site to serve its clients in eastern Canada. In connection with the sale transaction, the Company entered into a ten year lease of the facility. Under the terms of the lease, the Company has two options to extend the term of the lease, each in five year increments, for a total additional term of up to ten years. The terms of the lease also include a capital improvement allowance of $1.5 million to be applied towards certain identified building maintenance and repairs.
