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Stock impact report

SouthState to sell 170 branches in $475M lease-back deal [Yahoo! Finance]

SouthState Bank Corporation (SSB) 
NASDAQ:AMEX Investor Relations: southstatebank.com/rci_pt_bumper/5756
Company Research Source: Yahoo! Finance
Winter Haven, Florida-based SouthState Bank has agreed to sell nearly 170 of its branches to Blue Owl Real Estate Capital for a cash purchase of roughly $475 million, the company said in a Securities and Exchange Commission filing Monday Following the closing of the sale of the branches, SouthState will enter into triple net lease agreements with Blue Owl for each branch, with initial lease terms of 15 years, according to the filing. SouthState can renew the leases three consecutive times, with five years for each agreement. There will be a 2% annual rent hike during the initial and renewal terms, according to the filing. The affected branches are in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. The lender said it will not shut down any branches or exit any market as part of the sale-leaseback transaction. SouthState anticipates earning additional interest income by investing the proceeds from the sale-leaseback transaction; it will be initially alloca Show less Read more
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