BlueLinx provided update on its deleveraging initiatives and operations
BlueLinx Holdings announced an update on its deleveraging initiatives and operations. The Company continues to actively explore sale leaseback and real estate sale opportunities, and expects to be able to announce further details on these activities in the coming weeks. In addition, on November 22 the Company filed a three-year, $50M universal shelf registration statement on Form S-3 with the SEC. Mitch Lewis, President and Chief Executive Officer, stated, "We are making good progress at various stages of several real estate monetization opportunities through sale leasebacks and outright sales from our $100M portfolio of owned real estate. We believe these efforts should generate meaningful debt reduction in the next 60 days. In addition, to provide additional financial flexibility, we filed a shelf registration statement. While we have no present plans to issue securities under the shelf registration statement, it adds to our options by providing accessibility to the capital markets for the next three years, if and when we determine that to be appropriate." Additionally, the Company is clarifying the calculation of the leverage ratio under its term loan agreement. At September 28 the Company's term loan balance was $147.2M the average balance of its revolving credit facility was $357.9M, its equipment finance lease liability was $34.4M and its unrestricted cash was $10.0M.