S&P gives BlueLinx, notes B+

S&P said it gave B+ ratings to BlueLinx Holdings Inc. (BXC) and its expected $300 million of senior secured notes. The agency also assigned a 3 recovery rating.

“The strong tailwinds from solid new construction activity, increased repair and remodel spending and the very favorable commodity pricing environment over the last 12-18 months have benefited BXC's top line. For instance, the company increased its revenue to over $4 billion as of the 12 months ended June 30, 2021, which reflects a 50% increase relative to the same period in 2020,” S&P said in a press release.

Based on a forecast of 1.5 million to 1.6 million housing starts, the agency said it sees BXC’s revenue in the $3 billion to $4 billion range over the next 12 months.

BXC plans to use the proceeds to refinance the equivalent level of borrowings under its asset-based lending facility. It also plans to downsize the facility to $350 million from $600 million.

The outlook is stable.

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