BlueLinx Holdings Inc., the Atlanta-based distributor, announced today it has amended and trimmed its revolving credit agreement. The change replaces the current $500 million credit facility with a $400 million facility plus a $100 million "accordion" credit facility, but doesn't affect the company substantially because it wasn't anywhere near its credit limit.
The old $500 million credit facility, scheduled to mature in May 2011, was with a syndicate led by Wachovia Bank. The new $400 million credit facility and $100 million "accordion" credit, slated to mature in January 2014, is with a syndicate led by Wells Fargo Bank, which has acquired Wachovia.
"This decrease does not impact the operating company's current available borrowing capacity under the agreement's revolving credit facility," BlueLinx said today in an SEC filing, "since the borrowing base, which is based on eligible accounts receivable and inventory, currently permits less than $400 million in revolver borrowings. As of the period ended July 3, 2010, the operating company's excess availability was approximately $170 million, after taking into account $10 million of letters of credit."
"We are pleased to enter into this amendment with Wells Fargo and the other lenders, which we believe is an endorsement of both the company's strength and our plans for growth," Doug Goforth, BlueLinx' chief financial officer and treasurer, said in a press release. "This agreement extends our financing through the end of 2013, which allows us to remain focused on growing our business."
BlueLinx, which provides products from more than 750 suppliers to 11,500 customers nationwide, reported May 6 that its net loss shrank to $14.7 million in its fiscal first quarter ended April 3 from a $60.7 million net loss in the year-earlier period. Revenues rose 6% to $431.1 million--the first such year-over-year increase in four years--while overall unit volume increased by 1.4% from 2009's fiscal first quarter.