Lion Electric completes sale-leaseback transaction for Mirabel battery manufacturing building
February 6, 2023
By Canadian Manufacturing
MONTREAL — The Lion Electric Company, a manufacturer of all-electric medium and heavy-duty urban vehicles, announced that it has completed a sale-leaseback transaction with BTB Real Estate Investment Trust for its battery manufacturing building located in Mirabel, Quebec for a total purchase price of $28 million.
The proceeds from the transaction will be used by the company to repay amounts outstanding under its revolving credit facility and to fund transaction expenses.
Concurrent with the sale, Lion entered into a lease agreement with BTB for the Mirabel battery manufacturing building, with an initial 20-year term and subsequent renewal options. The transaction is not expected to impact Lion’s operation of the battery facility, and it does not cover the innovation center building which remains the property of Lion.
RBC Capital Markets acted as exclusive real estate advisor to Lion in connection with the transaction.
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