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Perma-Pipe sells, leases back Tennessee facility

NILES - Perma-Pipe International Holdings Inc. Monday said it has completed a sale and lease-back transaction with Nash88 LLC that will generate $8.7 million in net proceeds for the company.

The property sold consists of land and buildings in Lebanon, Tennessee, related to the coating and fabrication of district heating and cooling piping systems. Perma-Pipe will continue to occupy the facility under an initial 15-year lease, with an option to renew up to an additional 20 years, the company said.

At closing, $400,000 was placed in a short-term escrow account to cover certain post-closing contingencies that may arise.

"Our objective in the transaction was to raise capital and to reinvest this into the business, which will allow us to continue to pursue our planned programs for growth at a time when the future market recovery and operational cash flows are uncertain," said David Mansfield, president and CEO of Perma-Pipe.

"We have a number of very compelling opportunities to pursue, and the additional funds generated from the transaction will allow us to proceed unhindered by the severe restrictions we have operated under since the start of the pandemic a year ago," he said.

Perma-Pipe is a global provider of pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications.

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