To help repay indebtedness under BlueLinx’s revolving credit facility, the building products distributor completed the sale of its former distribution facilities in Minneapolis, Minnesota, and Des Moines, Iowa, for an aggregate purchase price of approximately $12 million.
BlueLinx integrated their operations into existing Cedar Creek facilities in Minneapolis and Des Moines last year. BlueLinx acquired Cedar Creek last year. The company plans to serve its local markets from those facilities, which are under long-term leases, according to the company.
“We are pleased to be able to realize value for these two facilities after successful facility integrations in the Minneapolis and Des Moines markets. We will continue to look for opportunities to monetize our real estate assets to further reduce our overall leverage,” said Mitch Lewis, president and CEO, in a public statement.
The sales come after BlueLinx completed a sale-leaseback transaction, in May, for its distribution facility in University Park, Illinois for a purchase price of $23 million. Net proceeds from the transaction were also used to repay indebtedness under the company’s term loan.
In March, BlueLinx amended its term loan facility, which enables the company to monetize up to $50 million in real estate assets during 2019 to pay down debts.
