OfficeMax Receives Disbursement From Boise Cascade

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OfficeMaxannounced that it will receive approximately $129 million today in cash proceeds related to its investment in Boise Cascade Holdings.

Since October 2004, OfficeMax has held two classes of securities in BCH -- Series A non-voting equity securities that paid an annual dividend yielding 8%, and a 20.4% ownership interest in the Series B Units, which do not accrue any dividend.

OfficeMax will receive $112 million for all of the Series A units that equals the original $66 million investment plus $46 million in accrued dividends. The dividend will cease upon completion of the redemption. It's expected to trigger recognition of a pre-tax operating gain of approximately $68 million of the total $180 million in deferred book gain OfficeMax has carried on its balance sheet.


The office-supplies retailer will additionally receive approximately $17 million, as Boise Cascade also declared a distribution of approximately $85 million for holders of its Series B units. The distribution will be recognized as income by OfficeMax and will not reduce the $109 million investment amount.

The article OfficeMax Receives Disbursement From Boise Cascade originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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