Investors in BlueLinx Holdings fully subscribed to the company's rights offering, generating roughly $58.5 million in net proceeds, the Atlanta-based building products distributor announced today.
The rights offering also left essentially unchanged at around 55% the stake held by Cerberus ABP Investor LLC. Cerberus had committed to backstopping the rights offering by buying common stock shares for any rights that were unexercised when the rights offering expired last Friday.
When it unveiled plans for the rights offer on April 26, BlueLinx said it would use the proceeds to pay off debt in its credit facility and to fund capital improvements.
"We are pleased with the results of the offering and are grateful to our stockholders for their continued support," president and CEO George Judd said in today's announcement.
BlueLinx has struggled over the past few years. On May 5, the company reported its net loss shrank to $12.3 million in the first quarter from a $14.7 million loss in the year-earlier period on a 9.4% drop in revenue to $390.6 million. For all 2010, the company posted a $53.2 million net loss and a $23.9 million operating loss.
Last year, Ceberus attempted to buy the rest of the shares that it didn't already own and take the company private, but it failed to persuade enough shareholders to sell their stock.
