Key Developments For Builders FirstSource, Inc.
Builders FirstSource, Inc. (BLDR.O) (Nasdaq)
Builders FirstSource, Inc. Appoints Chad Crow As Chief Financial Officer; Announces Resignation Of Charles Horn As CFO
Builders FirstSource, Inc. announced that its Board of Directors has appointed M. Chad Crow as the Company's new Chief Financial Officer (CFO). The Company also announced that Charles Horn, the Company's previous CFO, had resigned effective today in order to take a position as CFO of a technology company.
Builders FirstSource, Inc. Announces Settlement Of Stockholder Litigation Regarding Recapitalization
Builders FirstSource, Inc. announced that it has entered into a definitive stipulation to settle the consolidated class and derivative action that was filed in connection with its previously announced recapitalization. The settlement is subject to the approval of the Delaware Court of Chancery.
Levi & Korsinsky, LLP Announces Class Action Against Builders FirstSource, Inc.
Levi & Korsinsky announced that a class action lawsuit has been filed in Delaware Chancery Court against the board of directors of Builders FirstSource, Inc. and the controlling stockholders of Builders FirstSource, JLL Partners, Inc. (JLL) and Warburg Pincus LLC (Warburg Pincus), in connection with JLL's and Warburg Pincus' announcement of a recapitalization plan for Builders FirstSource. JLL and Warburg Pincus collectively own 49.9% of the common stock of Builders FirstSource and hold $98 million of the $275 million of debt issued by the Company. On September 1, 2009, JLL and Warburg Pincus proposed a recapitalization under which they would exchange their Builders FirstSource notes due to mature in 2012 for 49 million shares of common stock valued at $2 per share while holders of the remaining notes may elect to exchange each $1,000 principal amount of notes into either $750 principal amount of a new debt security with a maturity of 2017, equity on the same basis as the JLL/Warburg Pincus notes, or any combination thereof -- provided that no more than $40 million of new common stock and no less than $20 million of new common stock will be issued in the exchange. In reaction to the proposed of the recapitalization plan, shares of Builders FirstSource dropped from over $8.30 per share to $4.90 per share.
Builders FirstSource, Inc. Hires Financial And Legal Advisors
Builders FirstSource, Inc. announced that the Special Committee of the Board of Directors of the Company has retained Moelis & Company, LLC as its financial advisor, Alston & Bird LLP as its legal counsel, and Morris, Nichols, Arsht & Tunnell LLP as its special Delaware counsel to assist the Special Committee in its review of the capital restructuring proposal made by JLL Partners Fund V, L.P. (JLL) and Warburg Pincus Private Equity IX, L.P. (Warburg). No decisions have been made by the Special Committee with respect to the response, if any, to the JLL/Warburg proposal. There can be no assurance that the proposal from JLL and Warburg or any other transaction will be approved or completed.
Barrack, Rodos & Bacine Announces An Investigation Into Builders FirstSource, Inc.
Barrack, Rodos & Bacine announced that it is investigating potential claims against JLL Partners, Inc. (JLL), Warburg Pincus LLC (Warburg Pincus) and the Board of Directors of Builders FirstSource, Inc. related to the recapitalization plan proposed on September 1, 2009, by JLL and Warburg Pincus. Under the terms of the recapitalization proposal, Warburg Pincus and JLL, which collectively own approximately 50% of the outstanding shares of the Company, offered to exchange $98 million of floating rate Builders FirstSource notes that they own and that are due to mature in 2012, for 49 million shares of common stock valued at $2 per share. The remaining noteholders will be permitted to exchange their notes for new notes due to mature in 2017 at 75% of par value, or some combination of new notes and common stock valued at $2 per share. In reaction to the announcement of the recapitalization plan, shares of Builders FirstSource dropped more than 35%, falling from $7.69 to $4.98 per share, and continued their decline to close at $4.31 per share. The investigation concerns possible breaches of fiduciary duty and other violations of state law related to the reorganization proposal made by JLL and Warburg Pincus, which collectively are owners of a majority of the Company's common stock, and the board of directors of Builders FirstSource.
