Stock Alert: Big Lots Climbs 28%

(RTTNews) - Shares of Big Lots Inc. (BIG) are climbing more than 28 percent in Thursday's trading at $20.22 after the discount retailer announced $725 million in sale/leaseback agreements. The stock has traded in a range of $10.13 to $39.53 in the past 52 weeks.

Wednesday, Big Lots said it has entered into sale and leaseback agreements with affiliates of Oak Street Real Estate Capital, LLC relating to the company's distribution centers in Columbus, Ohio; Durant, Oklahoma; Montgomery, Alabama; and Tremont, Pennsylvania.

The transactions are expected to close in the company's fiscal second quarter. The company expects gross proceeds from the transactions to be $725 million and net proceeds to be about $550 million.

Big Lots said it intends to use the net proceeds to fully pay down debt on its revolving credit facility, provide additional liquidity, and for other corporate purposes when market conditions normalize. These include investments in growth initiatives and potential share repurchases following approval from the company's board of directors.