NORWALK, CT, June 9, 2004 – Trans-Lux Corporation (AMEX: TLX), a leading supplier of programmable electronic information displays and owner/operator of cinemas, announced that on June 3, 2004, the Company entered into a sale/leaseback of its Norwalk, Connecticut headquarters to a third-party investor. The sale price was $8,080,000, of which $5,500,000 was paid at closing and $2,580,000 is payable four years from closing. Trans-Lux leased back the entire property for four years, after which a three-year lease for part of the building will take effect. In conjunction with the sale, Trans-Lux prepaid $4,900,000 of its long-term debt with its senior lenders. The transaction will result in a gain, which will be recognized over the term of the leases. The financial results of the transaction will be reported in the quarter ending June 30, 2004.
Executive Vice President and Co-Chief Executive Officer Thomas Brandt stated, “The sale and leaseback of our headquarters enables us to reduce our long-term debt while maintaining our strong presence in Norwalk, Connecticut, where we have operated for over 40 years. As a result of the transaction and the recent successful exchange offer for our 7½% Convertible Subordinated Notes due 2006, we have eliminated or extended 49% of the long-term debt that would have otherwise become due in 2005 and 2006, enabling us to both strengthen our liquidity and further our long-term financing plans. In addition, it should provide us greater flexibility in fostering the Company’s growth.”
Trans-Lux is a worldwide, full-service provider of integrated multimedia systems for today's communications environments. The essential elements of these systems are real-time, programmable electronic information displays we manufacture, distribute and service. Designed to meet the evolving communications needs of both the indoor and outdoor markets, these displays are used primarily in applications for the financial, banking, gaming, corporate, transportation, entertainment and sports industries. In addition to its display business, the Company owns and operates a chain of motion picture theatres in the western Mountain States.
