Proceeds from the sale of building and the real property will be used to reduce the company's outstanding tax-retention, operating-lease financing, the company says. Under terms of the deal, Hamilton Sundstrand agreed to pay $21.75 million when the sale closes, with the remainder due 12 months later.
Besides buying the facility, Hamilton Sundstrand also assumed all of Caribe Aviation's payables and accrued expenses valued at $3 million. The aviation repair company will use $13.5 million from the sale to repay outstanding senior debt, with the balance, net of expenses, earmarked for working capital costs.
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