Builders FirstSource Receives Capital Restructuring Proposal

September 8th, 2009 by Editor

Builders FirstSource Inc., based in Dallas, announced on September 1 that it had received a proposal from its two largest stockholders, JLL Partners Fund V L.P. (JLL) and Warburg Pincus Private Equity IX L.P. (Warburg), proposing a restructuring of the Company’s outstanding $275.0 million aggregate principal amount of second priority senior secured floating rate notes and a common stock rights offering to Builders FirstSource common stockholders.As of August 31, 2009, JLL and Warburg owned approximately 50 percent of the outstanding shares of Builders FirstSource common stock. Builders FirstSource has been informed by JLL and Warburg that, as of August 31, 2009, they collectively beneficially owned approximately $98 million aggregate principal amount of the Notes.

The Board of Directors of Builders FirstSource has formed a Special Committee comprised of independent and disinterested directors to evaluate the proposal from JLL and Warburg. The committee will review and evaluate the proposal to determine what action, if any, is in the best interests of the Builders FirstSource stockholders, other than JLL and Warburg, and to make a recommendation to the Board of Directors of the Company with respect to the proposal.

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