OfficeMax to Receive Approximately $129M in Proceeds from Boise Cascade Stake
OfficeMax (NYSE: OMX) today announced that it will receive approximately $129 million in cash proceeds on February 12, 2013 related to its October 2004 investment in Boise Cascade Holdings, L.L.C. ("BCH"). Since 2004, OfficeMax has held two classes of securities in BCH, non-voting equity securities ("Series A Units") and voting equity securities ("Series B Units").
BCH will redeem all of the Series A Units held by OfficeMax for $112 million, equal to the original investment amount of $66 million plus $46 million of total accrued dividends. As previously disclosed, OfficeMax had been recording income earned from the 8% annual dividend yield on the Series A Units as a reduction of operating, selling and general and administrative expenses in its Corporate & Other segment. This dividend income will cease upon completion of the redemption of the Series A Units on February 12, 2013.
OfficeMax also continues to hold a 20.4% ownership interest in the Series B Units of BCH, which do not accrue any dividend. OfficeMax has accounted for the Series B Units under