Building products distributor BlueLinx Holdings entered an agreement to an amendment to its term loan facility, according to a news release from the company.
BlueLinx said the amendment will allow the company to pursue efforts to monetize up to $50 million in real estate assets during 2019 to accelerate its debt reduction initiatives. In its most recent quarterly earnings report, BlueLinx reported a net loss of $9.9 million for the third quarter of 2018. Additionally, the distributor’s long-term debt more than doubled in the first three quarters of 2018 compared to 2017.
“We are pleased to have this flexibility to pursue more sale leaseback opportunities to unlock the value of our real estate assets and reduce our leverage,” said president and CEO of BlueLinx Mitch Lewis.
The amendment also revises the Mariotta, Ga.-based distributor’s permitted leverage ratio and extends the period in which prepayment premiums are applicable to voluntary prepayments under the facility.
BlueLinx is expected to announce its fourth quarter results March 13.
