BlueLinx Holdings repays debt under term loan, amends ABL revolver

By Sarah Lizee

Olympia, Wash., Feb. 3 – BlueLinx Holdings Inc. repaid debt under its term loan with proceeds from sale-leaseback transactions totaling $34 million, according to a press release.

The transactions closed on Jan. 31.

Following the repayment, the balance of the term loan was about $85 million, which is 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.

The company also amended its asset-based revolver due Oct. 10, 2022 to better align advance rates with the seasonality associated with its business.

Under the amendment, the seasonal period was modified to run from Nov. 15, 2019 through July 15, 2020 for the calendar year 2019, and to run from Dec. 15 of each calendar year through April 15 of each immediately succeeding calendar year for the calendar year 2020 and onwards.

The measurement period in the definition of cash dominion event was extended to five consecutive business days from three consecutive business days.

No changes were made to facility size, maturity date, pricing or other material terms.

Wells Fargo Bank, NA is the administrative agent for the ABL revolver.

The distributor of building products is based in Marietta, Ga.

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