BlueLinx repays some revolver debt using mortgage proceeds

By Sara Rosenberg

New York, June 13 - BlueLinx Holdings Inc. repaid about $125 million of outstanding debt under its revolving credit facility using proceeds from a $295 million 10-year fixed-rate 6.4% mortgage, according to a company news release.

Remaining proceeds from the mortgage were used to replace the existing $165 million floating rate mortgage, which was at 7.4%.

In addition, the company entered into a $150 million five-year Libor swap at 5.4% on its revolver.

"These three actions along with the existing $165 million, 6% Libor interest cap that expires in the fourth quarter of 2007, provide substantial protection for the company against increases in interest rates for $610 million of our $626 million total debt that was outstanding at the end of the first quarter ended April 1, 2006," said David J. Morris, chief financial officer and treasurer, in the release.

"Additionally, by using the surplus proceeds from the mortgage refinancing to pay down a portion of our revolving credit facility, we now have more than $300 million of excess availability on our revolver."

BlueLinx is an Atlanta-based distributor of building products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.