Sale Leasebacks Offer Packagers Growth Capital
January 30, 2024 – SLB Capital Advisors provided perspectives to Semiconductor Digest regarding sale leasebacks as a capital solution in the semiconductor industry
- SLB Capital Advisors’ Principal Dave Rosenberg shared perspectives with Packaging Technology regarding sale leasebacks in the packaging space
- Many corners of the packaging industry have experienced sizeable growth over the last few years, fueled in part by the pandemic’s acceleration of e-commerce activity . . . taking advantage of these opportunities and keeping up with the packaging industry’s ever-changing landscape will require significant capital.
- Amid a reticent banking and bond market, sale leaseback transactions can provide a ready source of [this required] capital.
- From a corporate finance perspective, the recent increase in traditional debt financing rates makes sale leasebacks an attractive financing alternative on a cost of capital basis. Over the last 18-24 months, while the cost of many forms of debt financing has risen materially, the average cost of sale leaseback financing has been more muted
- For packaging companies looking to keep up with increasing demand and evolving technologies, unlocking capital tied up in real estate through a sale leaseback might just be the key.
- Read the full article here