Boise Cascade plans to tender for at least $150 million of 7 1/8% notes

By Angela McDaniels

Tacoma, Wash., Feb. 12 - Boise Cascade, LLC expects at least $150 million of proceeds from the sale of its paper and packaging segment and newsprint segment to Aldabra 2 Acquisition Corp. will be available to fund the planned tender offer for its 7 1/8% senior subordinated notes due 2014.

As previously reported, the company intends to offer to repurchase a portion of the 7 1/8% notes at par with the proceeds from the sale. The asset disposition tender offer is required under the note indenture.

On Tuesday, Boise Cascade disclosed in an 8-K filing with the Securities and Exchange Commission that proceeds from the asset sale will first be used to repay the company's asset securitization facility and senior secured credit facilities in full. The company expects at least $150 million of proceeds will be left to fund the tender offer.

The asset sale is expected to close during the last week of February, and the company plans to begin the tender offer promptly afterward.

Boise Cascade manufactures and sells corrugated containers, paper, pulp and newsprint. The company is based in Boise, Idaho.

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