U.S. general merchandise retailer Big Lots Inc. said April 8 that it has agreed to sell or lease back its distribution centers in Ohio, Oklahoma, Alabama and Pennsylvania to affiliates of Oak Street Real Estate Capital LLC in a deal worth $725 million.
Big Lots said it expects to receive net proceeds of about $550 million from the transactions, which it plans to use to fully pay down debt on its revolving credit facility, provide additional liquidity and, when market conditions normalize, for other corporate purposes.
"[W]hen we return to more normal conditions, it will enhance the company's ability to take other measures to drive shareholder value," Big Lots CEO and President Bruce Thorn said in a statement.
The deals are expected to close in the fiscal second quarter, subject to continued due diligence, final documentation and other customary closing conditions.
Big Lots' stock rose 11.67% to $17.61 in after-hours trading in New York following the announcement.