BlueLinx Announces Completion of Sale-Leaseback Transaction and Amendment to Term Loan
March 04 2020 - 04:44PM
BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of
building and industrial products in the United States, today
announced that it has completed a sale-leaseback transaction for
its distribution facilities in Elkhart, Indiana, for net cash
proceeds of $7.5 million. The transaction closed on February
28, 2020, and as a part of the transaction, the Company entered
into a lease agreement for the property for an initial term of 15
years, with multiple renewal options, demonstrating its long-term
commitment to this local market.
Net proceeds from the sale-leaseback transaction
were used to repay indebtedness under the Company’s term
loan. Following this repayment, the balance of the Company’s
term loan was approximately $77.4 million.
The Company utilized its continuing principal
reduction to enter into an amendment to its term loan facility on
February 28, 2020, pursuant to which the Company will no longer be
subject to the quarterly total net leverage ratio covenant when the
principal balance of the term loan is less than $45 million.
The amendment does not create an obligation or requirement to make
payments or reduce the principal balance, and did not require the
payment of an amendment fee.
The Company will provide an update on these
transactions and its continuing strategy to delever during its
upcoming earnings call at 10:00 a.m. Eastern on March 11, 2020.
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 strategy.
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 filed 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, including those caused
by the spread of contagious illness; 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.
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