CatchMark Completes Acquisition of 18,063 acres of Prime Oregon Timberlands; Closes on Amended Credit Facility
16:01 ET
ATLANTA, Aug. 30, 2018 /PRNewswire/ --
Jerry Barag, CatchMark's President and CEO, said; "Bandon marks our expansion into the Pacific Northwest and offers the high-quality stocking characteristics and sustainability attributes CatchMark seeks to support solid, long-term earnings growth for our stockholders."
The Bandon timberlands feature:
- Merchantable stocking of 4.2 MMBF/gross acre (32 tons/acre) with a five-year average harvest of 10.3 MMBF per year (79,000 tons per year).
- Merchantable inventory of 87% commercial conifers, including 77% Douglas fir compared to a 65%-70% regional average.
- A strong balance of merchantable timber and pre-merchantable acres for long-term sustainability.
- More than 90% of the expected five-year average harvest volume from sawtimber.
- Exposure to a highly desirable wood basket with tight supply-demand dynamics and both domestic and international market exposure.
CatchMark funded the Bandon purchase from a combination of cash on hand and borrowing under an amended credit facility, which closed last week. The amended facility increased total capacity by $75 million; right-sized its multi-draw term loan to $200 million; and added a new seven-year $140 million term loan to refinance existing debt under the multi-draw term loan. The loan facility will bear interest at an adjustable rate equal to a base rate plus 0.7% or a LIBOR rate plus 1.70%.
About CatchMark
* As of July 6, 2018
SOURCE CatchMark Timber Trust, Inc.