- March 31, 2006
The company received net proceeds of approximately $16.8 million from the sale of its building and land in Sugar Land, Texas, which was used to repay a portion of its outstanding debt. Concurrent with the sale, the company entered into a seven-year operating lease agreement for approximately 50% of the building. This transaction allows Suntron to reduce its outstanding debt levels and right size its manufacturing footprint. Suntron also expects to benefit from eliminating future interest costs and the fixed overhead costs related to the portion of the building that was not utilized.
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