Danka To Sell Austin, Texas Facility, Land In Kansas - Will Net $9.7 Million
Press release from the issuing company
ST. PETERSBURG, Fla.-July 13, 2001--Danka Business Systems PLC today announced that it has completed the sale of its Austin, Texas facility, to Sage Land Company, Inc. for the price of $7 Million. Danka will use the net proceeds of sale to reduce the debt under its Tax Retention Operating Lease (TROL) credit facility. Danka formerly used the property for its Omnifax business, which it sold in 1999. The Company had been leasing the property to Xerox Corporation.
In addition, the Company announced that it has entered into a contract to sell its property in Lenexa, Kansas for the price of $2.7 Million. This sale is expected to close on Tuesday, July 17, 2001. The Company will also use these proceeds to reduce outstanding borrowings on the Company's TROL Credit Facility.
Danka Chief Executive Office, Lang Lowrey, commented: ``We are pleased to announce the sale of these properties. The Company has taken non-strategic assets and used the proceeds to further reduce its outstanding debt. We are in the process of looking for other such opportunities as we continue to reduce debt and improve the Company's balance sheet.''
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