BlueLinx Holdings Inc. 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 сompany 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 сompany’s term loan. Following this repayment, the balance of the сompany’s term loan was approximately $57.8 million. BlueLinx Holdings 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.
Mitch Lewis, President and CEO, 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.”
BlueLinx Holdings Inc. is a leading distributor of building and industrial products in the United States.
