BusinessWeek - February 13, 2007
Rex Stores Corp., which operates stores selling consumer electronics and appliances, on Tuesday said it agreed to sell 94 of its current and former store locations for about $84 million to Coventry Real Estate Investments LLC.
The company will also lease back at least 40 of the properties for an initial lease term expiring Jan. 31, 2010. The leases will contain renewal options for up to 15 additional years. Rex is still determining which properties it will lease back from Coventry, which are worth about $66.5 million on its books.
Rex plans to use proceeds from the sale to pay off about $17 million to $19 million in mortgage debt related to the properties, fund alternative energy projects and for other general corporate purposes. The company expects to close the deal April 30.
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