The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Plum Creek Retires $463 million of Debt

Wednesday, January 05, 2011

Plum Creek Retires $463 million of Debt09:05 EST Wednesday, January 05, 2011 SEATTLE (Business Wire) -- Plum Creek (NYSE:PCL) announced that it has used the proceeds from its recent $575 million, 4.7 percent bond issuance to prepay $463 million of debt. The company completed the early retirement of an aggregate of $213 million of private placement notes scheduled to mature during the fourth quarter of 2011. The company retired $37 million of 7.97 percent notes and $176 million of 7.66 percent notes. In addition, the company has pre-paid, in full, its $250 million term credit agreement scheduled to mature in June 2012 that carried an interest rate of LIBOR plus 1 percent. The company expects to record a one-time charge of $13 million (approximately $0.08 per diluted share) in the fourth quarter of 2010 for debt retirement costs. Pre-payment of the private notes will reduce the company's interest expense by approximately $14 million. “During the past month we've renewed our credit facility and completed these debt pre-payments. These actions successfully conclude the company's refinancing plans,” said Rick Holley, president and CEO. “We enter the new year with a strong balance sheet, attractive financing costs and ample liquidity. We will continue to be conservative in the management of our balance sheet and are well positioned to execute on our strategies aimed at maximizing the value of our shareholders' investment in the company.” Plum Creek is the largest and most geographically diverse private landowner in the nation with approximately 7 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information, visit Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended.Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seek,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates,” or the negative of those words or other comparable terminology. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions. These and other risks, uncertainties and assumptions are detailed from time to time in our filings with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and the Securities Act of 1933, as amended. It is likely that if one or more of the risks materializes, or if one or more assumptions prove to be incorrect, the current expectations of Plum Creek and its management will not be realized. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and neither Plum Creek nor its management undertakes any obligation to update or revise any forward-looking statements. Plum CreekInvestors:John Hobbs, 1-800-858-5347orMedia:Kathy Budinick, 1-888-467-3751