Boise Cascade Plans Initial Offering for $16 to $18 a Share

Boise Cascade LLC, a U.S. producer of wood products used in home construction, plans to raise $213 million in an initial public offering to help repay debt as the nation’s housing industry recovers.

Boise will sell about 11.8 million shares at a range of $16 to $18 each, the Boise, Idaho-based company said today in a regulatory filing. The shares will trade as BCC on the New York Stock Exchange, according to the filing.

Boise is controlled by Madison Dearborn Partners LLC, a Chicago-based private equity firm, according to the filing. The company was formed in 2004 on Madison Dearborn’s acquisition of OfficeMax’s forest products and paper assets. The firm will continue to hold a majority of Boise after the share sale.

“We believe that our scale, closely integrated businesses and significant capital investments throughout the downturn provide us with substantial operating leverage to benefit from a recovery in the U.S. housing market,” Boise said in the filing.

The company operates 18 wood-product factories and 31 distribution centers, making such products as plywood sheathing and laminated-veneer lumber. In the latest 12-month period, Boise had earnings before interest, taxes, depreciation and amortization of $80.1 million on sales of $2.62 billion, according to the filing.

Bank of America Corp. and Goldman Sachs Group Inc. are lead underwriters for the offering. The underwriters have an option to buy another 1.76 million shares.

Assuming a final price of $17 a share and the exercise of underwriter options, Boise may get about $213 million in net proceeds from the sale, the company said in the filing. Boise expects to use $25 million from the sale to repay debt under its revolving credit facility. The remainder is for general corporate purposes.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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