Friday, December 16, 2005

RadioShack Enters $220 Sale Leaseback of HQ

SEC Edgar Database - December 16, 2005

RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.

RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
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