Boise Cascade Launches IPO
Forest products company Boise Cascade Co. (NYSE: BCC) will launch an initial public offering (IPO) today. About 11.8 million shares will be offered with an estimated price range of $16 to $18 a share.
Underwriters include BofA/Merrill Lynch, Goldman Sachs, Deutsche Bank, J.P. Morgan and Wells Fargo have been granted a 30-day overallotment option on 1.76 million shares. If the option is exercised, Boise Cascade's net proceeds would be in the range of $216.5 million to $243.6 million.
The company plans to use $25 million to repay its revolving debt and the remainder for general corporate purposes. Following the IPO, there will be about 44.46 million shares outstanding.
Boise Cascade ultimately is controlled by private equity firm Madison Dearborn, which holds three of six board seats. According to the Form S-1 filed with the Securities and Exchange Commission, the company intends to add at least one additional director following the IPO.
The lumber business has been positive over the past 12 months, with Weyerhaeuser Co. (NYSE: WY) up about 54%, Universal Forest Products Inc. (NASDAQ: UFPI) up more than 21% and Plum Creek Timber Co. (NYSE: PCL) up nearly 20%.
Filed under: 24/7 Wall St. Wire, Commodities, IPOs Tagged: BCC, PCL, UFPI, WY