By Angela McDaniels
Tacoma, Wash., June 12 - Boise Cascade Holdings, LLC said it sold the 15.75% promissory note due 2015 issued to it by Boise Inc.
Funds managed by Angelo, Gordon & Co., LP purchased the note for $53.8 million on June 10, according to an 8-K filing with the Securities and Exchange Commission.
Boise Cascade acquired the note in connection with the sale of its paper and container business to Aldabra 2 Acquisition Corp. Aldabra changed its name to Boise Inc. and issued the promissory note to Boise Cascade when the acquisition closed in February.
As of June 10, the principal amount of the note was $59.3 million and unpaid interest totaled $1.79 million.
The note is callable at par at any time, in its entirety or in increments of $100,000.
Boise Cascade contributed the net proceeds from the promissory note sale to wholly owned subsidiary Boise Cascade, LLC as an equity contribution, the filing stated.
The company said that under the indenture of its 7 1/8% senior subordinated notes due 2014, it must use the net proceeds of the note sale within one year to either repay senior debt, to acquire additional assets or to make a tender offer at par for a portion of the 7 1/8% notes.
Boise Cascade does not expect to begin a tender offer for the notes in the near term and will instead invest the proceeds in short-term investments as it evaluates potential uses for the funds, according to the filing.
Boise Cascade is a lumber company based in Boise, Idaho.
| Issuer: | Boise Inc.
|
| Seller: | Boise Cascade Holdings, LLC
|
| Issue: | Promissory note
|
| Amount: | $59,303,650.70
|
| Proceeds: | $53.8 million
|
| Maturity: | Aug. 21, 2015
|
| Coupon: | 15.75%
|
| Call option: | At any time
|
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