BlueLinx Announces Planned Rights Offering

By Hallie Busta

Building material distributor BlueLinx announced Thursday that it registered a rights offering of common stock to its stockholders with the Securities and Exchange Commission and expects to use the proceeds to repay a portion of its revolving debt while improving working capital. If fully subscribed, the offering will generate nearly $40 million. BlueLinx reports that it held approximately $171.4 million in outstanding debt under its revolving credit facilities and approximately $209.6 million in mortgage debt at the end of FY 2012, down from $94.5 million in revolving debt and $243.5 million in mortgage debt in 2011.

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