BMHC gains access to more borrowing

Hardware Retailing, May, 2009

BOISE. Idaho -- Pro dealer Building Materials Holding Corp. (BMHC) has obtained a waiver from lenders that will allow the company to borrow up to $20 million through June 1.

BMHC's credit agreement provides $200 million in revolving credit subject to limitations and monthly covenant compliance; and a $340 million term note maturing in November 2011. As of April 13, there were $8.3 million in borrowings outstanding under the revolver and approximately $315 million outstanding under the term note. The new lines of credit are intended to provide BMHC with "enough liquidity to continue to meet our ongoing business obligations to customers, suppliers and employees," says Robert Mellor. BMHC's chairman and CEO.

This waiver extends a previous waiver the company had negotiated, which ran through April 15. The new waiver requires BMHC to file tax returns, develop a business plan and limit its capital expenditures to $500.000.

Last month, BMHC released preliminary results for fiscal 2008, during which it lost $215 million on revenue that fell by 39 percent to $1.3 billion.