BlueLinx amends term loan
Move frees up assets to accelerate debt reduction.
Building products distributor BlueLinx Holdings Inc. has entered into an amendment for its term loan facility.
The Marietta, Ga.-based company said the amendment allows BlueLinx to monetize up to $50 million in real estate assets during 2019. This will be used to accelerate debt reduction initiatives.
“We are pleased to have this flexibility to pursue more sale leaseback opportunities to unlock the value of our real estate assets and reduce our leverage,” said Mitch Lewis, president and CEO of BlueLinx.
The amendment also revises the distributor’s permitted leverage ratio while extending the period in which prepayment premiums are applicable to voluntary prepayments under the facility.
BlueLinx distributes more than 50,000 branded and private-label products through 40 states. The company services about 15,000 national, regional, and local dealers, along with specialty distributors, national home centers, industrial, and manufactured housing customers.
Last November BlueLinx reported third quarter 2018 net sales of $859.8 million, up 79.4% from net sales of $479.3 million in the third quarter 2017. But the company also posted a net loss of about $10 million for the quarter compared to a net income of $5.7 million in the third quarter 2017.
In April 2018 BlueLinx completed a $413 million acquisition of fellow building products distributor Cedar Creek. BlueLinx is expected to report fourth quarter and 2018 sales on March 13.
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