ATLANTA,
Aug. 30, 2018 /PRNewswire/
-- CatchMark Timber Trust, Inc. (NYSE: CTT)
announced today the completion of its acquisition of 18,063 acres
of prime Oregon timberlands for
$88.8 million from Forest Investment
Associates (FIA). The timberlands — known as the Bandon Property —
are strategically situated within the Douglas fir/western hemlock
zone between the Coos Bay markets
and Roseburg mills approximately
150 miles southwest of Portland.
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
CatchMark Timber
Trust, Inc. (NYSE: CTT) is a self-administered and self-managed,
publicly-traded timberland REIT that strives to deliver superior
risk-adjusted returns for all stakeholders through disciplined
acquisitions, sustainable harvests, and well-timed real estate
sales. Headquartered in Atlanta
and focused exclusively on timberland ownership and management,
CatchMark began operations in 2007 and owns interests in
approximately 1.6 million acres* of timberlands located in
Alabama, Florida, Georgia, Louisiana, North
Carolina, South Carolina,
Tennessee and Texas. For more information, visit
www.catchmark.com.
* As of July 6, 2018
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SOURCE CatchMark Timber Trust, Inc.