BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of
building and industrial products in the United States, today
announced that it has completed sale-leaseback transactions
covering nine properties for aggregate net cash proceeds of $34
million, which were used to repay indebtedness under the Company’s
term loan. The transactions closed on January 31, 2020.
Management Commentary
Mitch Lewis, President and Chief Executive
Officer, stated, “I am pleased to announce the closing of these
sale-leaseback transactions, which generated an additional $34
million in net cash proceeds for debt repayment. Generating
value from our owned real-estate has been a key component in our
deleveraging initiatives, and it is noteworthy that over the past
twelve months, we have successfully executed on this aspect of our
long-term strategic plan.”
Term Loan Information
Following the repayment described above, the
balance of the Company’s term loan was approximately $85 million,
which is well below the designated term loan principal balance of
$95.3 million necessary to maintain the leverage covenant levels
established in the third amendment to the Company’s term loan
facility.
Amends Asset Based Revolving Credit Facility to Align
Seasonal Reporting
In a separate and unrelated matter, the Company
today announced the amendment of its Asset Based Revolving Credit
Facility (the “Revolving Credit Facility”) due October 10, 2022, to
better align advance rates with the seasonality associated with its
business. No changes were made to facility size, maturity date,
pricing or other material terms.
Supplemental Information
As the Company has noted previously, the
calculation of the leverage ratio under its term loan facility for
any period is generally determined by taking the Company’s
“Consolidated Total Debt” and dividing it by the Company’s
“Consolidated EBITDA,” as those terms are defined in the term loan
agreement.
“Consolidated Total Debt” under the term loan
agreement is generally determined by adding the balance of the
Company’s term loan, the prior month’s average balance of its
revolving credit facility, and its equipment finance lease
liability, and reducing that amount by unrestricted cash up to $10
million. Following the term loan payment described above, the
Company estimates that “Consolidated Total Debt” under the term
loan agreement will range between $455 and $460 million for
purposes of its fourth quarter 2019 leverage ratio.
Consolidated EBITDA is generally determined by
taking the Adjusted EBITDA that the Company reports, and adding
additional adjustments and add-backs specified by the term loan
agreement. The Company anticipates that the adjustments and
add-backs to Adjusted EBITDA for calculating Consolidated EBITDA
under the term loan will be approximately $5 million to $7 million
at the Company’s 2019 fiscal year end.
Additional Information on Sale-Leaseback
Transactions
The Company sold nine distribution facilities to
AIC Ventures, a private investment fund manager, in these
sale-leaseback transactions, and entered into lease agreements for
each of the properties for initial terms of 15 years, with multiple
renewal options, demonstrating its long-term commitment to the
markets where the facilities are located. The facilities included
in the transactions are located in Akron, Ohio; Charlotte, North
Carolina; Cincinnati, Ohio; Denville, New Jersey; Long Island, New
York; Memphis, Tennessee; Pensacola, Florida; Portland, Maine; and
San Antonio, Texas.
About BlueLinx Holdings Inc.
BlueLinx (NYSE: BXC) is a leading wholesale
distributor of building and industrial products in the United
States with over 50,000 branded and private-label SKUs, and a broad
distribution footprint servicing 40 states. BlueLinx has a
differentiated distribution platform, value-driven business model
and extensive cache of products across the building products
industry. Headquartered in Marietta, Georgia, BlueLinx has over
2,200 associates and distributes its comprehensive range of
structural and specialty products to approximately 15,000 national,
regional, and local dealers, as well as specialty distributors,
national home centers, industrial, and manufactured housing
customers. BlueLinx encourages investors to visit its website,
www.BlueLinxCo.com, which is updated regularly with financial and
other important information about BlueLinx.
Contacts
Susan O’Farrell, SVP, CFO & TreasurerBlueLinx Holdings
Inc.(770) 953-7000
Mary Moll, Investor Relations(866)
671-5138investor@bluelinxco.com
Forward-Looking Statements
This press release contains forward-looking
statements. Forward-looking statements include, without limitation,
any statement that predicts, forecasts, indicates or implies future
results, performance, liquidity levels or achievements, and may
contain the words “believe,” “anticipate,” “expect,” “estimate,”
“intend,” “project,” “plan,” “will be,” “will likely continue,”
“will likely result” or words or phrases of similar meaning.
These forward-looking statements include, but are not limited
to, statements about our deleveraging initiatives and long-term
strategic plan; the estimated range of the Company’s Consolidated
Total Debt under its term loan agreement for purposes of its fourth
quarter 2019 leverage ratio; the amount of anticipated adjustments
and add-backs for calculating Consolidated EBITDA under the
Company’s term loan agreement at its 2019 fiscal year end; and the
Company’s commitment to local markets.
Forward-looking statements in this press release
are based on estimates and assumptions made by our management that,
although believed by us to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties
that may cause our business, strategy, or actual results to differ
materially from the forward-looking statements. These risks
and uncertainties include those listed under the heading “Risk
Factors” in Item 1A of our Annual Report on Form 10-K for the year
ended December 29, 2018, and those discussed in our Quarterly
Reports on Form 10-Q and in our periodic reports led with the SEC
from time to time. We operate in a changing environment in
which new risks can emerge from time to time. It is not possible
for management to predict all of these risks, nor can it assess the
extent to which any factor, or a combination of factors, may cause
our business, strategy, or actual results to differ materially from
those contained in forward-looking statements. Factors that
may cause these differences include, among other things: our
ability to monetize real estate assets; our ability to integrate
and realize anticipated synergies from acquisitions; loss of
material customers, suppliers, or product lines in connection with
acquisitions; operational disruption in connection with the
integration of acquisitions; our indebtedness and its related
limitations; sufficiency of cash flows and capital resources;
changes in interest rates; fluctuations in commodity prices;
adverse housing market conditions; disintermediation by customers
and suppliers; changes in prices, supply and/or demand for our
products; inventory management; competitive industry pressures;
industry consolidation; product shortages; loss of and dependence
on key suppliers and manufacturers; new tariffs; our ability to
successfully implement our strategic initiatives; fluctuations in
operating results; sale-leaseback transactions and their effects;
real estate leases; exposure to product liability claims; our
ability to complete offerings under our shelf registration
statement on favorable terms, or at all; changes in our product
mix; petroleum prices; information technology security and business
interruption risks; litigation and legal proceedings; natural
disasters and unexpected events; activities of activist
stockholders; labor and union matters; limits on net operating loss
carryovers; pension plan assumptions and liabilities; risks related
to our internal controls; retention of associates and key
personnel; federal, state, local and other regulations, including
environmental laws and regulations; and changes in accounting
principles. Given these risks and uncertainties, we caution
you not to place undue reliance on forward-looking statements.
We expressly disclaim any obligation to update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as required by law.
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Apr 2024 to May 2024
BlueLinx (NYSE:BXC)
Historical Stock Chart
From May 2023 to May 2024