ATLANTA, Feb. 26, 2013 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, announced today that it has set the terms for its previously announced $40 million rights offering. Under the terms of the rights offering, the Company is distributing, at no charge, to the holders of its common stock as of 5:00 p.m. New York City time on March 4, 2013, one non-transferable subscription right for each share of the Company's common stock then owned. Each subscription right will entitle the holder to purchase 0.35845026 of a share of common stock at the subscription price of $1.75 per whole share. Assuming the rights offering is fully subscribed, the Company expects to issue an aggregate of 22,857,142 new shares of common stock in the rights offering. The Company expects to utilize the estimated net proceeds of the rights offering of approximately $38.8 million to repay indebtedness under its U.S. revolving credit facility. The rights offering also includes an over-subscription privilege, which entitles a stockholder who exercises all of its basic subscription rights in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among persons exercising this over-subscription privilege. The Company also announced that the mailing of offering materials to stockholders is expected to begin on March 5, 2013 and that the subscription period will expire at 5:00 p.m., New York City time, on March 27, 2013, unless extended. Cerberus ABP Investor LLC ("Cerberus"), the Company's majority shareholder, has indicated that it intends to exercise all of the rights issued to it and to subscribe for the maximum additional shares pursuant to the over-subscription privilege that it would be entitled to purchase. However, such indication is not binding, and Cerberus is not legally obligated to do so.