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.
84 Lumber looking at trades training program
National pro dealer 84 Lumber is exploring the idea of a construction trades training program in the New Orleans and Baton Rouge, La. markets, according to an article in The Advocate.
The pilot program would be in partnership with the Louisiana Small Business Development Center at Southern University. Training would cover not only what happens on the jobsite, but also things like how to submit a bid and handle payroll, according to Roy Lindsey, sales manager at 84 Lumber’s Baton Rouge location.
Although still in the early planning stages, Lindsey said he hoped the program could contribute to the quality of the local labor pool and also help delevop a loyal customer base for 84 Lumber.
Sales inch upwards at Builders FirstSource
Builders FirstSource, the Dallas-based chain of lumberyards and component plants, reported sales of $162.8 million for its first fiscal quarter, a 1% increase from sales of $161.4 million in the same period a year ago. Net income for the quarter, which ended March 31, 2011, was $21.2 million, compared to a net loss of $31.4 million a year ago.
“We are encouraged by our first quarter financial results, especially in light of continued housing market challenges, the difficult pricing environment and the overall state of the economy,” said Floyd Sherman, CEO at Builders FirstSource . “As we anticipated, quarter-over-quarter comparisons will be very difficult through the first half of this year due to the temporary momentum created by the expiration of the federal tax credit for first-time homebuyers during the first half of 2010.”
Sherman pointed out that actual U.S. single-family housing starts for the first quarter of 2011 were 89,900, a decrease of 21.4 percent compared to the first quarter of 2010. “In the South Region, as defined by the U.S. Census Bureau, and which includes all of our markets, we saw similar trends as actual single-family housing starts were 52,700, down 19.3 percent, and single-family units under construction were 110,800, down 14.6 percent compared to the first quarter of 2010.”
Builders FirstSource operates 52 distribution centers and 46 manufacturing facilities in 9 states, principally in the Southern and Eastern United States.