BlueLinx Holdings, a distributor of building and industrial products, announced an update on its deleveraging initiatives and operations, highlighted by volume gains and active discussions on real estate opportunities. The distributor continues to actively explore sale-leaseback and real-estate sale opportunities—BlueLinx has sold three distribution facilities in 2019 and completed two sale-leasebacks.
“We are making good progress at various stages of several real-estate monetization opportunities through sale-leasebacks and outright sales from our $100 million portfolio of owned real estate,” president and CEO Mitch Lewis said in a news release. “We believe these efforts should generate meaningful debt reduction in the next 60 days.”
Additionally, BlueLinx recently filed a three-year, $50 million universal shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC), according to a news release. Lewis said while the company currently has no plans to issue securities under the shelf registration statement, the statement adds to the company’s options by “providing accessibility to capital markets for the next three years.”
“We are pleased to report tangible gains in volume as the company continues to emphasize customer service, sales growth, and operational efficiency,” Lewis said. “The sales volume recovery discussed during BlueLinx’s third quarter earnings call has continued through the first seven weeks of the fourth quarter.”
In the first seven weeks of the quarter, excluding the effect of the loss of a key siding line, BlueLinx has made progress recapturing market share. Lewis said overall volumes are up approximately 3% over the comparable prior year period.
Marietta, Ga.-based BlueLinx Holdings has a distribution footprint serving 40 states and the company distributes its range of structural and specialty products to approximately 15,00 customers across the U.S.
