A sizable block of Boise Cascade (NYSE: BCC ) stock is to land in new hands if a secondary common stock offering goes as planned. The company announced that major shareholder Boise Cascade Holdings will sell 10 million shares in an underwritten issue, at a price of $27.00 apiece. Additionally, the offering's underwriters have been granted a 30-day purchase option for up to an additional 1.5-million shares at the same price, minus underwriting discounts.
In the press release announcing the pricing of the issue, Boise Cascade stressed it will receive no proceeds, as it is not the selling party. It will, however, be a buyer -- it has agreed to purchase just over 3.86 million shares in the offering, concurrent with its closing, for a total price of roughly $100 million.
Bank of America (NYSE: BAC ) unit Merrill Lynch, Goldman Sachs, JPMorgan Chase's (NYSE: JPM ) J.P. Morgan, and the Securities arms of Wells Fargo (NYSE: WFC ) and Deutsche Bank (NYSE: DB ) are the joint book-running managers for the offering, which is expected to close on July 30.
Boise Cascade currently has 43.2 million shares outstanding, and its stock most recently closed at $26.50 per share.
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