CVGI · Commercial Vehicle Group, Inc.

Commercial Vehicle Group has executed a strategic sale-leaseback transaction for its Vonore, Tennessee manufacturing facility, generating $16 million in gross proceeds. The company expects to realize approximately $14.6 million in net proceeds after accounting for taxes and transaction-related expenses, which it immediately deployed to prepay a portion of its existing term loan facility. This action directly reduces the company's leverage profile, addressing a key financial objective management has previously emphasized. Under the accompanying 20-year lease agreement, CVG will continue operating at the facility with an initial annual base rent of approximately $1.4 million, subject to 3.5% annual increases, and has secured two 10-year renewal options. President and CEO James Ray characterized the transaction as building on recent momentum and providing additional cash flow for deleveraging, while reaffirming the company's focus on cash generation and debt reduction. Management anticipates no operational disruption at the Vonore plant and has reaffirmed its full-year 2026 outlook. This transaction represents a balance sheet optimization move that converts fixed asset value into working capital while maintaining operational control through a long-term lease.