BlueLinx Announces Closing of Sale-Leaseback Transaction
August 17 2020 - 4:15PM
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 owned distribution facility in Denver, Colorado, for net cash
proceeds of $10.6 million. The transaction closed on August 14,
2020, and as a part of the transaction, the Company entered into a
lease agreement for the property 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 $57.8 million. As previously announced, the
Company will no longer be subject to the term loan facility’s total
net leverage ratio covenant as long as the principal balance level
under the facility is less than $45 million.
Management Commentary
Mitch Lewis, President and Chief Executive
Officer, stated, “I am very pleased to announce the closing of this
latest sale-leaseback transaction, which generated meaningful net
cash proceeds for debt repayment. We remain in active and ongoing
discussions on other opportunities to monetize our owned real
estate portfolio as we continue to aggressively pursue our
deleveraging strategy.”
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
approximately 2,000 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
Kelly C. Janzen, 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. The
forward-looking statements in this press release include statements
about discussions regarding opportunities to monetize our owned
real estate portfolio.
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 28, 2019, 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: the COVID-19
pandemic and other contagious illness outbreaks and their potential
effects on our industry, suppliers and supply chain, and customers,
and our business, results of operations, cash flows, financial
condition, and future prospects; 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; our
ability to monetize real estate assets; 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; import taxes and
costs, including new or increased tariffs, anti-dumping duties,
countervailing duties, or similar duties; our ability to
successfully implement our strategic initiatives; fluctuations in
operating results; sale-leaseback transactions and their effects;
real estate leases; changes in interest rates; 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 Jun 2024 to Jul 2024
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Jul 2023 to Jul 2024