BlueLinx Holdings declared Friday it will use the company's stock price as of the end of trading on Monday, June 20, to determine payouts for its $60 million rights offering.
That rights offering, announced April 26, is intended to help the Atlanta-based distributor pay off debt in its credit facility and to fund capital improvements.
The offering calls for BlueLinx to distribute transferable subscription rights to common stock holders as of June 20. The offering is being backstopped by Cerberus ABP Investor, which owns 55% of BlueLinx. Cerberus will have to purchase the remaining shares of common stock that remain unused at the end of the rights offering.
BlueLinx shares were trading at $3.77 when the rights issue was announced. Shares were worth $2.90 apiece near noon today.
BlueLinx posted a $53.2 million net loss and a $23.9 million operating loss for 2010. The net loss was an improvement from the $61.4 million net loss the company suffered during 2009. Net sales during 2010 were $1.8 billion, up 9% from $1.65 billion in sales in 2009.
Ceberus attempted last year to buy the rest of the shares that it didn't already own but failed to persuade enough shareholders to sell their stock.
