Contact Information: CONTACT: Levi & Korsinsky, LLP Joseph Levi, Esq. Eduard Korsinsky, Esq. 30 Broad Street - 15th Floor New York, NY 10004 Tel: (212) 363-7500 Fax: (212) 363-7171 www.zlk.com
Levi & Korsinsky, LLP Announces Class Action Against Builders FirstSource, Inc. -- BLDR
| Source: Levi & Korsisnky LLP
NEW YORK, NY--(Marketwire - September 24, 2009) - Levi & Korsinsky announces that a class action
lawsuit has been filed in Delaware Chancery Court 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' 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.
If you own common stock in Builders FirstSource and wish to obtain
additional information, please contact us at the number listed below or
visit http://www.zlk.com/bldr1.html.
Levi & Korsinsky has expertise in prosecuting investor securities
litigation and extensive experience in actions involving financial fraud
and represents investors throughout the nation, concentrating its practice
in securities and shareholder litigation.