| BOISE, ID -- Building Materials Holding Corporation, a leading provider of building materials and construction services to professional residential builders and contractors, announced that it has secured a commitment for $83.5 million of exit financing that will be available to the Company upon its emergence from Chapter 11 to help meet its operating needs and grow its business. The agreement includes an option to expand the facility by up to $20 million, for a total of $103.5 million, subject to certain conditions. The facility will be provided by a group of lenders led by Wells Fargo. BMHC expects to emerge from Chapter 11 before the end of the year.
BMHC also announced that it has filed an Amended Disclosure Statement and Plan of Reorganization with the U.S. Bankruptcy Court in Wilmington, Delaware. The amended plan, which is subject to Court approval, provides for BMHC's secured lenders to convert debt into equity, becoming majority owners of the Company upon emergence. The proposed treatment of other creditor classes, including general unsecured creditors, is described in the amended Disclosure Statement.
"We are very pleased to have obtained a commitment for exit financing, which is an important step in preparing the Company for emergence and keeps us on track to complete our balance sheet restructuring before year-end," said Robert E. Mellor, Chairman and Chief Executive Officer. "The restructuring will reduce our debt substantially and provide us with greater financial flexibility, putting our Company in a stronger position for the future."
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