Closing Expected Within 30 to 45 Days
COLUMBUS,
Ohio, July 5, 2023 /PRNewswire/ -- Big
Lots, Inc. (NYSE: BIG) today announced that it has entered
into a sale and leaseback agreement with affiliates of Blue Owl
Capital relating to the company's distribution center in
Apple Valley, CA, and 26 owned
store locations. The company previously disclosed that it had
entered into a Letter of Intent on May 24,
2023, which, in addition to the distribution center and
owned stores, contemplated a sale and leaseback of the company's
corporate headquarters that has subsequently been excluded from the
definitive agreement. The sale and leaseback transaction is
scheduled to close within 45 days, subject to continued due
diligence, final documentation, and other customary closing
conditions.
Gross proceeds from the transaction are expected
to be $318 million. Net of expenses and taxes, the company
expects to receive estimated net proceeds of
approximately $310 million.
The company intends to use $100 million of the net proceeds from the sale
and leaseback transaction to fully pay down its synthetic lease on
the Apple Valley distribution
center, and to use the remainder of the net proceeds to pay down
debt on its asset-based lending revolving credit facility.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots
stated, "We are pleased to have reached a definitive agreement with
Blue Owl for the sale and leaseback of our Apple Valley distribution center and the vast
majority of our remaining owned stores. As we discussed on our Q1
earnings call, we are highly focused on ensuring we have plenty of
liquidity to get through this period of macroeconomic challenges,
and monetizing these assets is a significant step forward in
ensuring such liquidity. Blue Owl has been a good partner on our
other regional distribution centers, which we sold and leased back
in 2020, and we look forward to furthering our relationship through
this transaction."
About Big Lots
Headquartered in
Columbus, Ohio, Big Lots, Inc.
(NYSE: BIG) is one of America's largest home discount retailers,
operating more than 1,420 stores in 48 states, as well as a
best-in-class ecommerce platform with expanded fulfillment and
delivery capabilities. The Company's mission is to help customers
"Live Big and Save Lots" by offering unique treasures and
exceptional bargains on everything for their home, including
furniture, seasonal decor, kitchenware, pet supplies, food items,
laundry and cleaning essentials and more. Big Lots is the recipient
of Home Textiles Today's 2021 Retail Titan Award. For more
information about the company or to find the store nearest you,
visit biglots.com.
About Blue Owl
Blue Owl (NYSE: OWL) is
a leading asset manager that is redefining alternatives. With over
$144 billion in assets under
management1, we invest across three multi-strategy
platforms: Credit, GP Strategic Capital, and Real Estate. Anchored
by a strong permanent capital base, we provide businesses with
private capital solutions to drive long-term growth and offer
institutional and individual investors differentiated alternative
investment opportunities that aim to deliver strong performance,
risk-adjusted returns, and capital preservation. Together with over
570 experienced professionals across 10 offices globally, Blue Owl
brings the vision and discipline to create the exceptional. To
learn more, visit www.blueowl.com.
1As of March 31, 2023
Cautionary Statement Concerning
Forward-Looking Statements
Certain statements in this
release are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, and such
statements are intended to qualify for the protection of the safe
harbor provided by the Act. The words "anticipate," "estimate,"
"continue," "could," "approximate," "expect," "objective," "goal,"
"project," "intend," "plan," "believe," "will," "should," "may,"
"target," "forecast," "guidance," "outlook" and similar expressions
generally identify forward-looking statements. Similarly,
descriptions of our objectives, strategies, plans, goals or targets
are also forward-looking statements. Forward-looking statements
relate to the expectations of management as to future occurrences
and trends, including statements expressing optimism or pessimism
about future operating results or events and projected sales,
earnings, capital expenditures and business strategy.
Forward-looking statements are based upon a number of assumptions
concerning future conditions that may ultimately prove to be
inaccurate. Forward-looking statements are and will be based upon
management's then-current views and assumptions regarding future
events and operating performance and are applicable only as of the
dates of such statements. Although we believe the expectations
expressed in forward-looking statements are based on reasonable
assumptions within the bounds of our knowledge, forward-looking
statements, by their nature, involve risks, uncertainties and other
factors, any one or a combination of which could materially affect
business, financial condition, results of operations or
liquidity.
Forward-looking statements that we make herein
and in other reports and releases are not guarantees of future
performance and actual results may differ materially from those
discussed in such forward-looking statements as a result of various
factors, including, but not limited to, the current economic and
credit conditions, inflation, the cost of goods, our inability to
successfully execute strategic initiatives, competitive pressures,
economic pressures on our customers and us, the availability of
brand name closeout merchandise, trade restrictions, freight costs,
the risks discussed in the Risk Factors section of our most recent
Annual Report on Form 10-K, and other factors discussed from time
to time in other filings with the SEC, including Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. This release should
be read in conjunction with such filings, and you should consider
all of these risks, uncertainties and other factors carefully in
evaluating forward-looking statements.
You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events or otherwise. You are advised, however, to consult
any further disclosures we make on related subjects in our public
announcements and SEC filings.
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SOURCE Big Lots, Inc.