BlueLinx Holdings Inc. 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.
BlueLinx is a leading wholesale distributor of building and industrial products in the United States.
