Sale-leaseback transactions involve the sale of property by the owner and a lease of the property back to the seller (FAS 13, Paragraph 32).
Typically, our sale-leaseback transactions have had no personal liability, no financial covenants or restrictions, and 10 to 20-year leases with term extensions and repurchase options.
Further, unlike debt payments, the entire amount of the lease payment is deductible for tax purposes.