SOURCE: Levi & Korsisnky LLP

September 24, 2009 13:08 ET

Levi & Korsinsky, LLP Announces Class Action Against Builders FirstSource, Inc. -- BLDR

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.

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