Thanks to a hefty tax refund, Building Materials Holding Corp. will pay off its revolving credit facility.
The dealer and construction services provider revealed this morning that it had received a $57 million federal tax refund for 2008. About 70% of the refund is being used to reduce borrowings from BMHC's credit agreement. The remaining 30% has been used to pay off its revolving credit facility and for working capital, the Boise, Idaho-based company said in a press statement.
As of May 22, there were no borrowings outstanding under the revolver and approximately $270.4 million outstanding under the term note.
"The federal tax refund reduces debt outstanding under our credit agreement as we continue to actively work with our bank group on a plan for creating the best capital structure to support our long-term strategy and business objectives," Robert Mellor, BMHC chairman and CEO, said in a prepared statement.
In April, BMHC announced that its lenders agreed to extend through June 29 a waiver that lets America's sixth-biggest LBM operation continue to borrow up to $20 million.
Earlier this month, BMHC reported that its net loss deepened in the first quarter 2009 to $45.2 million from a net loss of $33.9 million in the same three-month period a year ago. The dealer also reported first quarter sales plummeted 51% to $167 million from sales of $343 million in the first period 2008.
In this year's ProSales 100, BMHC posted the largest sales decline in 2008 of any dealer on the list: down nearly 41% to $1.3 billion. The dealer also slashed about 5,800 jobs last year, about a third of its total workforce.