LION ELECTRIC COMPLETES SALE-LEASEBACK TRANSACTION FOR MIRABEL BATTERY MANUFACTURING BUILDING

Rhea-AI Summary

Lion Electric Company (NYSE: LEV) has completed a sale-leaseback transaction with BTB Real Estate Investment Trust for its battery manufacturing building in Mirabel, Quebec, valued at C$28 million. The proceeds will help repay outstanding amounts on its revolving credit facility and cover transaction expenses. The company has entered a 20-year lease for the facility, which will not affect its operations there, while the innovation center remains owned by Lion. RBC Capital Markets acted as the exclusive real estate advisor for this transaction.

AI-generated analysis. Not financial advice.

Positive

• Completed a sale-leaseback transaction for the battery manufacturing building, raising C$28 million.
• Funds raised will be utilized to repay revolving credit facility amounts, improving financial flexibility.
• The 20-year lease agreement ensures continued operation of the facility.

Negative

• None.

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MONTREAL, Feb. 2, 2023 /PRNewswire/ - The Lion Electric Company (NYSE: LEV) (TSX: LEV) ("Lion" or the "Company"), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced that it has completed a sale-leaseback transaction with BTB Real Estate Investment Trust (TSX: BTB.UN) for its battery manufacturing building located in Mirabel, Quebec for a total purchase price of C$28 million. The proceeds from the transaction will be used by the Company to repay amounts outstanding under its revolving credit facility and to fund transaction expenses.

Concurrent with the sale, Lion entered into a lease agreement with BTB for the Mirabel battery manufacturing building, with an initial 20-year term and subsequent renewal options. The transaction is not expected to impact Lion's operation of the battery facility, and it does not cover the innovation center building which remains the property of Lion.

RBC Capital Markets acted as exclusive real estate advisor to Lion in connection with the transaction.

ABOUT LION ELECTRIC

Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles' components, including chassis, battery packs, truck cabins and bus bodies.

Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.

View original content:https://www.prnewswire.com/news-releases/lion-electric-completes-sale-leaseback-transaction-for-mirabel-battery-manufacturing-building-301737940.html

SOURCE Lion Electric

FAQ

What is the recent transaction completed by Lion Electric?

Lion Electric completed a sale-leaseback transaction for its battery manufacturing building in Mirabel, Quebec, for C$28 million.

How much money did Lion Electric raise from the sale-leaseback transaction?

Lion Electric raised C$28 million from the sale-leaseback transaction.

What will Lion Electric do with the proceeds from the sale-leaseback?

The proceeds will be used to repay amounts outstanding under its revolving credit facility and fund transaction expenses.

What is the duration of the lease agreement Lion Electric signed?

Lion Electric entered into a 20-year lease agreement for the battery manufacturing building.

Did the sale-leaseback transaction impact Lion Electric's operations?

No, the transaction is not expected to impact Lion Electric's operation of the battery facility.