NN Inc. advances restructuring with $16.8 million sale-leaseback deal
NNBR
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CHARLOTTE, N.C. – NN , Inc. (NASDAQ: NASDAQ:NNBR), an engineering and manufacturing company, disclosed on Monday that it has agreed to a sale-leaseback transaction involving three of its facilities. The deal, valued at $16.8 million, is slated to finalize by March 15, 2024, and is not expected to affect the company’s EBITDA.
The proceeds from this transaction will be directed towards paying down a portion of NN, Inc.’s term loan, which is anticipated to reduce the company’s cash interest expenses. Additionally, NN, Inc. has scaled down its corporate headquarters by approximately two-thirds via a subleasing agreement, further cutting operational costs.
Senior Vice President and Chief Financial Officer of NN, Inc., Mike Felcher, stated that these measures are integral to the company’s ongoing transformation plan, aiming to decrease the cost of capital and prepare for future refinancing opportunities under more favorable market conditions. Felcher emphasized the significance of these steps in aligning the company’s capital resources to support long-term growth objectives.
Operations at the facilities involved in the sale-leaseback will continue without interruption, and the transaction is not expected to impact NN employees or their customers.
NN, Inc. is a global diversified industrial company with a presence in North America, Europe, South America, and Asia. The company specializes in the design and production of high-precision components and assemblies for various markets, leveraging advanced engineering and materials science expertise.
These strategic financial moves come as part of NN, Inc.’s broader efforts to generate consistent free cash flow and strengthen its balance sheet. The company’s actions reflect a proactive approach to financial management amidst the dynamic economic landscape.
