Bluelinx Holdings Inc (ticker: BXC, exchange: New York Stock Exchange (.N))
News Release -
BlueLinx Announces Expiration of $60 Million Rights Offering
ATLANTA, Jul 25, 2011 (GlobeNewswire via COMTEX) --
BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today announced the expiration of the subscription period for its previously announced $60 million rights offering. The subscription period for the rights offering expired at 5:00 p.m., New York City time, on July 22, 2011. The rights offering was fully subscribed and, as a result, BlueLinx expects to receive net proceeds of approximately $58.5 million from the offering. Following the issuance of the newly subscribed shares, which is expected to occur on or about July 28, 2011, BlueLinx will have approximately 61.8 million total shares outstanding.
Cerberus ABP Investor LLC, BlueLinx' majority stockholder, as previously announced, entered into an investment agreement with the Company to backstop the rights offering, subject to certain conditions, by purchasing shares of common stock that relate to any rights that remained unexercised at the expiration of the rights offering. Following the completion of these transactions, Cerberus ABP Investor LLC will beneficially own approximately 55% of BlueLinx' common stock.
Commenting on the announcement, BlueLinx President and CEO George Judd stated, "We are pleased with the results of the offering and are grateful to our stockholders for their continued support."
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; 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.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: BlueLinx Corporation
CONTACT: Doug Goforth, CFO & Treasurer
BlueLinx Holdings Inc.
Maryon Davis, Director Finance & IR