CVG completes $16 million sale-leaseback of Tennessee facility

Commercial Vehicle Group Inc. (NASDAQ: CVGI) completed a sale-leaseback transaction for its manufacturing facility in Vonore, Tennessee, generating $16 million in proceeds, according to a company statement.

The company used the net proceeds to prepay a portion of its existing term loan facility to reduce its leverage profile. Under the agreement, CVG will lease back the Vonore property for a 20-year term with an initial annual base rent of approximately $1.4 million for the first year.

"This transaction builds on our recent momentum, providing additional cash flow to deleverage," said James Ray, President and Chief Executive Officer. "We continue to deliver on our previously stated objectives, with CVG's near-term focus being on cash generation and lowering our debt levels."

CVG expects no disruption to operational activities at the Vonore plant. The company reaffirmed its previously issued full-year 2026 outlook provided in its fourth-quarter 2025 earnings materials released on March 10, 2026.

CVG is a provider of systems, assemblies and components to the global commercial vehicle market and electric vehicle market.

You May Also Be Interested In

• JPMorgan Starts ICICI Prudential Asset Management (ICICIAMC:IN) at Overweight
• MacroGenics to receive $24.5M milestone from Sanofi on FDA approval
• BuzzFeed sells shares to Byron Allen affiliate for $5.8 million