BlueLinx Completes Three Property Sales
March 23 2017 - 4:45PM
Sales Generate Approximately $18.4
Million in Debt Reduction– 2017 July Mortgage Obligation to be
Fully Satisfied –
BlueLinx Holdings Inc. (NYSE:BXC), announced today that it has
completed the sale of its non-operating facility in Allentown,
Pennsylvania. The Company has also sold its Fort Worth, Texas and
Miami, Florida distribution facilities while simultaneously
entering into leases with the new owners of the two respective
facilities. BlueLinx intends to continue to use both facilities to
serve its customers in the Dallas-Fort Worth and South Florida
areas and surrounding markets. With these property sales and all
others incurred since April 2016, BlueLinx will fully satisfy its
July 2017 CMBS mortgage payment obligation of $60 million three
months ahead of schedule. “Less than a year ago we announced our
initiative to reduce the Company’s financial leverage and are
delighted to share that we continue to successfully execute on our
strategy to deleverage BlueLinx. We are exploring additional sale
and leaseback transactions, alternative refinancing options as well
as other real estate optimization strategies to continue to improve
the Company’s leverage and financial strength,” said Mitch Lewis,
President and Chief Executive Officer.
Susan O’Farrell, Senior Vice President and Chief
Financial Officer added, “We are thrilled with the property sales
we completed in the first quarter of 2017, enabling us to satisfy
our July 2017 mortgage obligation ahead of schedule. The
substantial remaining real estate portfolio value, which is well
above our outstanding mortgage, should enable us to continue to
deleverage our balance sheet, while providing us with potential
future opportunities to extract that value for the benefit of our
growth strategies.”
About BlueLinx Holdings
Inc.BlueLinx Holdings Inc., operating through its wholly
owned subsidiary BlueLinx Corporation, is a leading distributor of
building and industrial products in the United States. The
Company is headquartered in Atlanta, Georgia and operates its
distribution business through its broad network of distribution
centers. BlueLinx is traded on the New York Stock Exchange under
the symbol BXC. Additional information about BlueLinx can be found
on its website at www.BlueLinxCo.com.
Forward-looking StatementsThis
press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to our ability to return to
profitability, and our guidance regarding anticipated financial
results. All of these forward-looking statements are based on
estimates and assumptions made by our management that, although
believed by BlueLinx to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties,
including, but not limited to, economic, competitive, governmental
and technological factors outside of BlueLinx’s control that may
cause its business, strategy or actual results to differ materially
from the forward-looking statements. These risks and uncertainties
may include, among other things: changes in the prices, supply
and/or demand for products that it distributes, general economic
and business conditions in the United States; the activities of
competitors; changes in significant operating expenses; changes in
the availability of capital and interest rates; adverse weather
patterns or conditions; acts of cyber intrusion; and other factors
described in the “Risk Factors” section in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2016, its
Quarterly Reports on Form 10-Q, and in its periodic reports filed
with the Securities and Exchange Commission from time to time.
Given these risks and uncertainties, you are cautioned not to
place undue reliance on forward-looking statements. BlueLinx
undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events, and changes in expectation or otherwise, except as required
by law.
BlueLinx Contact Information:
Susan O’Farrell, SVP, CFO & Treasurer
BlueLinx Holdings Inc.
(770) 953-7000
Natalie Poulos, Investor Relations
BlueLinx Holdings Inc.
(770) 953-7522
investor.relations@bluelinxco.com
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