Wells Fargo and Bank of America will arrange a $750 million revolving credit facility to support BlueLinx’s acquisition of Cedar Creek. The revolver will include a $150 million accordion feature, subject to certain conditions, including the finalization of definitive loan agreements.
Additionally, BlueLinx has a commitment from HPS Partners for a $180 million term loan, subject to certain conditions, including the finalization of definitive loan agreements.
Proceeds from the ABL revolver and term loan will be used, among other things, to fund the purchase price of Cedar Creek and repay debt. Bluelinx anticipates having excess availability under the revolver of approximately $110 million after the acquisition closes and at the end of the second fiscal quarter.
Moelis & Company is acting as financial advisor for BlueLinx, while King & Spalding and Fried Frank are serving as primary legal counsel for the company.
The acquisition is expected to be completed within 45 days, subject to customary closing conditions and regulatory approvals.
Headquartered in Atlanta, BlueLinx is a distributor of building and industrial products in the United States.
Cedar Creek is a wholesale building materials company that provides wood products throughout the U.S.
