BlueLinx Holdings Inc. Announces Pricing of Private Offering of Senior Secured Notes
October 18, 2021 at 05:44 pm EDT
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BlueLinx Holdings Inc. announced that the Company has agreed to sell $300 million aggregate principal amount of its 6.00% Senior Secured Notes due 2029 in a private offering to persons reasonably believed to be “qualified institutional buyers,” as defined in Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States under Regulation S under the Securities Act. The 2029 Notes were priced to investors at 98.625% of their principal amount and will mature on November 15, 2029. The Company’s obligations under the 2029 Notes will be guaranteed by the Company’s domestic subsidiaries that are co-borrowers under or guarantee the Company’s ABL credit facility. The 2029 Notes and the related guarantees will be secured by a first-priority security interest in substantially all of the Company’s and each guarantor’s existing and future assets (other than receivables, inventory, deposit accounts, securities accounts, business interruption insurance and other related assets (the “ABL Collateral”)), subject to certain exceptions and customary permitted liens. The 2029 Notes and the related guarantees will also be secured on a second-priority basis by a lien on the ABL Collateral. The net proceeds from the offering of the 2029 Notes will be used to repay borrowings under the Company’s ABL credit facility. The offering of the Notes is expected to close on October 25, 2021, subject to the satisfaction or waiver of customary closing conditions. The Notes will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
BlueLinx Holdings, Inc. is a wholesale distributor of residential and commercial building products in the United States. The Company provides both branded and private-label stock keeping units (SKUs) across product categories, such as lumber, panels, engineered wood, siding, millwork, and industrial products. The Company distributes its products in two principal categories: specialty products and structural products. Its specialty products include items such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products. Structural products include items such as lumber, plywood, oriented strand board, rebar, and remesh and other wood products primarily used for structural support in construction projects. The Company also offers a range of value-added services and solutions to its customers and suppliers, including inventory stocking; intermodal distribution services; milling and fabrication services, and backhaul services.