Safe and Green Holdings Announces Preliminary Term Sheet to Refinance Waldron Facility
Safe & Green Holdings Corp. (NASDAQ: SGBX) has announced a potential refinancing deal for its Waldron facility, replacing the previously planned sale-leaseback transaction. The new terms are expected to be highly favorable, allowing the company to:
- Pay off more expensive existing debt
- Gain over $1 million in additional working capital
- Retain ownership of the flagship facility
Additionally, the company anticipates receiving a $1.4 million Employee Retention Tax Credit payment within the next year, further boosting its non-dilutive working capital. These financial moves aim to strengthen the company's position and support its growth strategy in the modular solutions industry.
Safe & Green Holdings Corp. (NASDAQ: SGBX) ha annunciato un potenziale accordo di rifinanziamento per il suo impianto di Waldron, sostituendo la precedente transazione di vendita e leasing. I nuovi termini dovrebbero essere altamente favorevoli, consentendo all'azienda di:
- Estinguere debiti esistenti più costosi
- Ottenere oltre 1 milione di dollari in capitale di lavoro aggiuntivo
- Mantenere la proprietà dell'impianto principale
Inoltre, l'azienda prevede di ricevere un pagamento di 1,4 milioni di dollari come credito d'imposta per la retention dei dipendenti entro il prossimo anno, aumentando ulteriormente il suo capitale di lavoro non diluitivo. Questi passi finanziari mirano a rafforzare la posizione dell'azienda e supportare la sua strategia di crescita nel settore delle soluzioni modulari.
Safe & Green Holdings Corp. (NASDAQ: SGBX) ha anunciado un posible acuerdo de refinanciamiento para su instalación de Waldron, reemplazando la transacción de venta y arrendamiento previamente planeada. Los nuevos términos se espera que sean muy favorables, permitiendo a la empresa:
- Pagar deudas existentes más costosas
- Obtener más de 1 millón de dólares en capital de trabajo adicional
- Retener la propiedad de la instalación principal
Además, la empresa anticipa recibir un pago de $1.4 millones por concepto de crédito fiscal de retención de empleados en el próximo año, lo que aumentará aún más su capital de trabajo no dilutivo. Estos movimientos financieros tienen como objetivo fortalecer la posición de la empresa y apoyar su estrategia de crecimiento en la industria de soluciones modulares.
세이프 앤 그린 홀딩스 주식회사 (NASDAQ: SGBX)는 월드론 시설에 대한 잠재적인 재융자 거래를 발표했으며, 이는 이전에 계획된 매각 및 임대 거래를 대체합니다. 새 조건은 매우 유리할 것으로 예상되며, 회사가 다음과 같은 일을 할 수 있도록 합니다:
- 더 비싼 기존 부채 상환
- 100만 달러 이상의 추가 운영 자본 확보
- 주요 시설의 소유권 유지
추가로, 이 회사는 향후 1년 내에 140만 달러의 직원 유지 세액 공제를 받을 것으로 예상하고 있으며, 이는 비희석성 운영 자본을 더욱 강화할 것입니다. 이러한 재정적 움직임은 회사의 위치를 강화하고 모듈 솔루션 산업에서의 성장 전략을 지원하는 것을 목표로 하고 있습니다.
Safe & Green Holdings Corp. (NASDAQ: SGBX) a annoncé un potentiel accord de refinancement pour son installation de Waldron, remplaçant la transaction de vente-bail précédemment prévue. Les nouveaux termes devraient être très favorables, permettant à l'entreprise de :
- Rembourser des dettes existantes plus coûteuses
- Gagner plus d'un million de dollars en capital de travail supplémentaire
- Conserver la propriété de l'installation phare
De plus, l'entreprise s'attend à recevoir un paiement de 1,4 million de dollars au titre du crédit d'impôt pour la rétention des employés au cours de l'année prochaine, renforçant ainsi son capital de travail non dilutif. Ces mouvements financiers visent à renforcer la position de l'entreprise et à soutenir sa stratégie de croissance dans l'industrie des solutions modulaires.
Safe & Green Holdings Corp. (NASDAQ: SGBX) hat ein potenzielles Refinanzierungsgeschäft für ihre Waldron-Anlage angekündigt, das die zuvor geplante Verkaufs-Leasing-Transaktion ersetzt. Die neuen Bedingungen werden voraussichtlich sehr vorteilhaft sein und dem Unternehmen ermöglichen:
- Kostspieligere bestehende Schulden abzuzahlen
- Über 1 Million Dollar zusätzliches Betriebskapital zu gewinnen
- Das Eigentum an der Hauptanlage zu behalten
Darüber hinaus geht das Unternehmen davon aus, innerhalb des nächsten Jahres eine Zahlung von 1,4 Millionen Dollar aus dem Employee Retention Tax Credit zu erhalten, was sein nicht verwässerndes Betriebskapital weiter erhöhen würde. Diese finanziellen Maßnahmen zielen darauf ab, die Position des Unternehmens zu stärken und seine Wachstumsstrategie in der modulare Lösungsbranche zu unterstützen.
- Potential refinancing deal on favorable terms for the Waldron facility
- Expected to gain over $1 million in additional working capital
- Retention of ownership of the flagship Waldron facility
- Anticipated $1.4 million ERTC payment within the next year
- Non-dilutive approach to increasing working capital
- None.
Insights
This refinancing move by Safe & Green Holdings is a strategic financial maneuver with positive implications. The company is opting for a more favorable debt structure, which could significantly improve its financial health. By refinancing the Waldron facility, SGBX is set to reduce interest expenses and increase working capital by over
The decision to retain ownership of the facility, rather than pursue a sale-leaseback, demonstrates confidence in the asset's long-term value. This, coupled with the expected
However, investors should note that this is still a preliminary term sheet and the final terms may differ. The company's ability to secure favorable financing terms amid challenging market conditions is a positive sign, potentially indicating strong underlying asset value or improving business prospects.
The decision to refinance rather than sell-leaseback the Waldron facility is a shrewd move in the current real estate market. By retaining ownership, Safe & Green Holdings maintains control over a critical operational asset while still unlocking its value for working capital. This strategy aligns well with the company's focus on modular construction and real estate development.
The Waldron facility, described as a "cornerstone of operations," likely plays a important role in the company's modular construction capabilities. Keeping it in-house could provide long-term strategic advantages in terms of production control, cost management and potential for future expansion or optimization.
Moreover, this move suggests management's confidence in the long-term value appreciation of the property. In a market where quality industrial and manufacturing spaces are in high demand, holding onto such assets could prove beneficial for future growth or potential monetization opportunities.
MIAMI, FL, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures, today announced that it has received a term sheet from a premier lender to refinance its Waldron facility. This potential refinancing transaction is expected to be on highly favorable terms and is being pursued in lieu of the previously planned sale-leaseback transaction.
The favorable terms offered are intended to allow Safe & Green to pay off more expensive existing debt and is expected to result in over
Paul Galvin, Chairperson and CEO of Safe & Green Holdings, commented, “This anticipated refinancing is expected to be on very favorable terms and would enable us to retain ownership of our Waldron facility, which is a cornerstone of our operations. Moreover, this transaction would provide us additional working capital to accelerate our growth strategy.”
Tricia Kaelin, Chief Financial Officer of Safe & Green Holdings, further noted, “Monetizing our equity in the asset in order to provide working capital is non-dilutive and these terms are more favorable compared to our current financing.”
In addition to this potential refinancing, the Company expects to receive the Employee Retention Tax Credit (ERTC) payment within the next year, which would provide an additional
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third-party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. The Company’s subsidiary, Safe and Green Development Corporation, is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose-built, prefabricated modules built from both wood and steel, sourced from one of SG Holdings’ factories and operated by the SG Echo subsidiary.
For more information, visit https://www.safeandgreenholdings.com/ and follow us at @SGHcorp on Twitter.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the Company’s term sheet from a premier lender to refinance its Waldron facility, and the Company’s expectation to receive the Employee Retention Tax Credit (ERTC) payment within the next year, which would provide an additional
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FAQ
What is Safe & Green Holdings' plan for refinancing its Waldron facility?
How much additional working capital does SGBX expect from the Waldron facility refinancing?
What is the expected amount of the Employee Retention Tax Credit (ERTC) payment for SGBX?
How does the potential refinancing affect SGBX's ownership of the Waldron facility?
