BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building and industrial products in the United States, today announced that it has completed a sale-leaseback transaction for its owned distribution facility in Denver, Colorado, for net cash proceeds of $10.6 million. The transaction closed on August 14, 2020, and as a part of the transaction, the Company entered into a lease agreement for the property with multiple renewal options, demonstrating its long-term commitment to this local market.
Net proceeds from the sale-leaseback transaction were used to repay indebtedness under the Company’s term loan. Following this repayment, the balance of the Company’s term loan was approximately $57.8 million. As previously announced, the Company will no longer be subject to the term loan facility’s total net leverage ratio covenant as long as the principal balance level under the facility is less than $45 million.