Boise Cascade does not plan to make tender offer for 7 1/8% notes

By Devika Patel

Knoxville, Tenn., July 2 - Boise Cascade Holdings, LLC most likely will not use the proceeds from the July 1 sale of its Brazilian subsidiary, Boise Cascade do Brasil, Ltda., to make a tender offer at par for a portion of its outstanding 7 1/8% senior subordinated notes due 2014, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The subsidiary was bought by Aracruz Celulose, SA for $47.1 million. The subsidiary owns a plywood and veneer mill and owns or controls approximately 35,000 acres of eucalyptus plantations in Brazil.

The sale's proceeds may be used to repay other debt or acquire additional assets. The company said in the filing it will probably invest the proceeds in high-quality, short-term investments as it evaluates potential uses for the funds.

Boise Cascade is a Boise, Idaho-based paper and wood products manufacturing and building materials distribution business.

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