Boise Cascade won't use stock sale proceeds to tender for 7 1/8% notes

By Angela McDaniels

Tacoma, Wash., April 1 - Boise Cascade Holdings, LLC does not plan to make a tender offer for the 7 1/8% senior subordinated notes due 2014 issued by Boise Cascade, LLC and Boise Cascade Finance Corp. using the proceeds of a recent stock sale, according to an 8-K filing with the Securities and Exchange Commission.

The company sold all of its common stock in Boise Inc. during February and March. Under the indenture for the notes, it is required to use the proceeds for capital expenditures, the repayment of senior debt or to make a tender offer for the notes at par.

Boise Cascade Holdings said it will satisfy this obligation through $40 million of capital spending and by repaying $120 million of its credit facility.

The building products company is based in Boise, Idaho.

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