BUILDERS FSTSCE : Chimicles & Tikellis LLP Investigates and Brings Claims Challenging Proposed Recapitalization of Builders FirstSource, Inc.
09/14/2009| 05:15pm US/Eastern
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WILMINGTON, Del., Sept. 14 /PRNewswire/ -- Chimicles & Tikellis LLP has initiated an investigation of, and together with Barrack, Rodos and Bacine has filed, claims against the board of directors of Builders FirstSource, Inc. ("Builders FirstSource" or the "Company," Nasdaq: BLDR) 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' September 1, 2009 announcement of their recapitalization plan for Builders FirstSource.
JLL and Warburg Pincus collectively own 49.9% of the common stock of Builders FirstSource and $98 million of the Company's $275 million debt issuance, which is slated to mature in 2012. JLL and Warburg Pincus have proposed a recapitalization pursuant to which they would swap their debt-holdings for common stock valued at $2 per share, which would result in more-than doubling the number of shares of common stock outstanding. On the day the proposal was made, Builders FirstSource stock dropped from $7.69 to $4.98 per share, and later reached a nadir of $4.27 per share on September 3, 2009. As part of the recapitalization, the other debt-holders of Builders FirstSource would be permitted to exchange their notes for common stock priced at $2 per share, for new notes at reduced par value maturing in 2017 or for a combination of the two.
Chimicles & Tikellis LLP has extensive experience litigating claims on behalf of stockholders and their companies in matters involving fiduciary duties of directors and controlling stockholders of Delaware corporations such as Builders FirstSource. If you are a stockholder of Builders FirstSource and would like to discuss the potential claims, your legal rights or the proposed recapitalization involving Builders FirstSource in greater detail, please contact Robert J. Kriner, Jr., Chimicles & Tikellis LLP, 222 Delaware Avenue, Suite 1100, P.O. Box 1035, Wilmington, DE 19899, (302) 656-2500, rjk@chimicles.com.
SOURCE Chimicles & Tikellis LLP
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