Data Communications Management (DCM) completes the sale and leaseback of its Oshawa, Ont., warehouse facility, which came along with 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 toward 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 10-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 10 years. The terms of the lease also include a capital improvement allowance of $1.5 million to be applied toward certain identified building maintenance and repairs.
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