Sale Leasebacks Offer Packagers Growth Capital
January 30, 2024 – SLB Capital Advisors shared perspectives with Packaging Technology regarding sale leasebacks in the packaging space
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
