Potlatch Announces New $250 Million Senior Unsecured Credit Facility
SPOKANE, Wash., Dec. 11, 2012 (GLOBE NEWSWIRE) -- Potlatch Corporation (Nasdaq: PCH) today announced the closing of a new five-year $250 Million Senior Unsecured Revolving Credit Facility with a syndicate of financial institutions, led by Bank of America Merrill Lynch and KeyBanc Capital Markets, Inc. The credit agreement also includes an optional increase in aggregate commitment amount of up to $100 million, subject to certain conditions. This agreement replaces the company's existing secured credit agreement maturing in December 2013 with significantly improved terms. As of the end of the company's most recent reported quarter ended September 30, 2012, no amounts were outstanding under the prior agreement.
"We are pleased to replace our existing secured credit facility with this new unsecured facility with much improved terms, demonstrating the continued improvement of fundamentals in our business, driven by the U.S. housing recovery," said Eric Cremers, Potlatch Corporation Executive Vice President and Chief Financial Officer. "This new credit facility provides us additional financial flexibility and additional liquidity to operate the business."
The company intends to use the Senior Unsecured Revolving Credit Facility to provide additional liquidity and general corporate purposes. Terms and conditions of the credit facility will be described in the company's filings with the Securities and Exchange Commission.
Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.43 million acres of timberland in Arkansas, Idaho, and Minnesota. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary. For more information about the company, visit our website at www.potlatchcorp.com.
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