CVV - CVD Equipment to sell and lease back New York facility

• Chemical vapor deposition systems and materials company CVD Equipment ( NASDAQ: CVV ) will sell and lease back its facility in Central Islip, New York.
• CVV has agreed to sell the premises consisting of land and building for $28.5M, subject to the completion of due diligence by the purchaser.
• Post the close of the sale, the company will enter into a lease agreement the purchaser.
• The lease will have an initial term of 10 years with two optional renewal terms of five years each.
• The annual fixed rent will be $1.5M for the first year of the initial ten-year term. The rent will increase by 3% every year thereafter.
• The net cash proceeds received is estimated to exceed $20M, subject to the finalization of the company's tax obligations associated with the sale.
• The proceeds will be used to strengthen balance sheet and fund growth opportunities.
• Source: Press Release

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