BlueLinx announces $60 million stock offering
In an effort to raise $60 million, building products distributor BlueLinx has announced it will commence a rights offering of common stock to its stockholders. The proceeds will be used to pay down debt and fund working capital, the company said in an April 26 filing with the Securities and Exchange Commission (SEC).
BlueLinx plans to distribute to its common stockholders transferable rights to purchase up to $60 million of its common stock.. In addition, stockholders may oversubscribe for additional shares of common stock. The company anticipates that the record date and the subscription price will be determined at or about the time that the SEC declares the company's registration statement effective. The subscription rights are expected to trade on the New York Stock Exchange under the symbol BXC RT.
Cerberus ABP Investor LLC, who owns approximately 55% of the company's common stock, will backstop the rights offering, subject to certain conditions, by purchasing shares of common stock that relate to any rights that remain unexercised. The investment agreement may be terminated by the company if the board of directors finds an alternative transaction that they consider more favorable for the company.
Headquartered in Atlanta, Georgia, BlueLinx is a leading distributor of building products in North America, with more than 750 suppliers to service approximately 11,500 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of 60 distribution centers.