Boise Cascade Co., a U.S. producer of wood products used in home construction, raised $247 million in its initial public offering, pricing the shares above an increased price range.
Boise sold 11.8 million shares, equivalent to a 28 percent stake, for $21 each, according to data compiled by Bloomberg. The company offered them for $18 to $20 apiece, after initially setting a price range of $16 to $18. The Boise, Idaho-based company’s shares will start trading tomorrow, listed on the New York Stock Exchange under the symbol BCC.
Boise is controlled by Madison Dearborn Partners LLC, a Chicago-based private equity firm, regulatory filings show. The company was formed in 2004 from Madison Dearborn’s acquisition of OfficeMax’s forest products and paper assets. The firm will continue to hold a majority of Boise after the IPO, according to regulatory filings.
Boise plans to use $25 million from the sale to repay debt under its revolving credit facility as the nation’s housing industry recovers, according to its prospectus. The remainder is for general corporate purposes.
“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 prospectus.
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 more than $2.6 billion, regulatory filings show.
Bank of America Corp. and Goldman Sachs Group Inc. led the offering.
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