OfficeMax Receives Disbursement From Boise Cascade

OfficeMax (NYSE: OMX  ) announced that it will receive approximately $129 million today in cash proceeds related to its investment in Boise Cascade Holdings.

Since October 2004, OfficeMax has held two classes of securities in BCH -- Series A non-voting equity securities that paid an annual dividend yielding 8%, and a 20.4% ownership interest in the Series B Units, which do not accrue any dividend.

OfficeMax will receive $112 million for all of the Series A units that equals the original $66 million investment plus $46 million in accrued dividends. The dividend will cease upon completion of the redemption. It's expected to trigger recognition of a pre-tax operating gain of approximately $68 million of the total $180 million in deferred book gain OfficeMax has carried on its balance sheet.

The office-supplies retailer will additionally receive approximately $17 million, as Boise Cascade also declared a distribution of approximately $85 million for holders of its Series B units. The distribution will be recognized as income by OfficeMax and will not reduce the $109 million investment amount.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2251716, ~/Articles/ArticleHandler.aspx, 10/24/2014 8:12:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement