ATLANTA, Jun 17, 2011 (GlobeNewswire via COMTEX) --
BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, announced today that its registration statement for its previously announced $60 million rights offering was declared effective by the U. S. Securities and Exchange Commission on June 17, 2011.
Under the terms of the rights offering, the Company is distributing at no charge to the holders of its common stock as of the record date transferable rights to purchase up to an aggregate of 28,571,428 new shares of common stock. In the rights offering, the Company is distributing to each such holder one transferable right for every share of common stock owned on the record date. Each right will entitle the holder to purchase approximately 0.85922541 of a share of common stock at the subscription price of $2.10 per whole share of common stock. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of the record date for the rights offering, stockholders, other than the backstop party, may oversubscribe for additional shares of common stock. The Company has entered into an investment agreement with Cerberus ABP Investor LLC, who beneficially owns approximately 55% of the Company's common stock before giving effect to the rights offering, to backstop the rights offering by purchasing shares of common stock that relate to any rights that remain unexercised at the expiration of the rights offering. The subscription rights are expected to be listed on the New York Stock Exchange under the symbol BXC RT.
The Company anticipates the following important dates for the rights offering. These dates are subject to change, and you should review the prospectus to determine the actual dates related to the rights offering.
Record Date June 20, 2011
Rights Eligible for Trading
on When Issued Basis June 21, 2011
Shares Trade Ex Rights June 22, 2011
From June 24, 2011
Subscription Period (1) to July 22, 2011
Last Day Rights May Be
Traded (1) July 21, 2011
Expiration Date (1) July 22, 2011
(1) Unless the offering is extended.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering will be made only by means of a prospectus. A copy of the prospectus may be obtained from the information agent, Eagle Rock Proxy Advisors, LLC at (855) 612-6975.
About BlueLinx Holdings Inc.
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing approximately 2,000 people, BlueLinx offers greater than 10,000 products from over 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. BlueLinx is traded on the New York Stock Exchange under the symbol BXC.
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our outlook on the housing industry. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of BlueLinx' control that may cause its business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: completion of the proposed rights offering, including satisfaction of the conditions to the backstop commitment; changes in the supply and/or demand for products that it distributes, especially as a result of conditions in the residential housing market; general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital, including the availability of residential mortgages; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions; adverse weather patterns or conditions; acts of war or terrorist activities; variations in the performance of the financial markets; and other factors described under "Risk Factors" in the Company's preliminary prospectus included as part of the Registration Statement on Form S-1 filed by the Company in connection with this offering and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, changes in expectation or otherwise, except as required by law.
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SOURCE: BlueLinx Corporation
CONTACT: Doug Goforth, CFO & Treasurer
BlueLinx Holdings Inc.
Maryon Davis, Director Finance & IR