CatchMark Timber Trust Declares First Quarterly Cash Dividend, Completes
Refinancing and Announces Changes In its Directors and Officers
NORCROSS, Ga., Dec. 19, 2013
NORCROSS, Ga., Dec. 19, 2013 /PRNewswire/ -- CatchMark Timber Trust, Inc.
(NYSE: CTT) (CatchMark Timber) today announced that its board of directors has
declared a cash distribution for the first quarter of 2014 of $0.11 per share
for each class of its common stock. The distribution is payable on March 17,
2014 to stockholders of record as of February 28, 2014.
In addition, CatchMark Timber announced today that it had reduced its
outstanding debt by $80 million with the net proceeds from its recently
completed public offering and completed a refinancing transaction of the
remaining $52 million outstanding under its credit facility. In connection
with the refinancing, the company entered into an amended and restated credit
agreement that provides for a multi-draw term credit facility of up to $150
million and a revolving credit facility of up to $15 million. The multi-draw
credit facility may be used to finance domestic timber acquisitions and
associated expenses and the revolving credit facility may be used for working
capital, to support letters of credit and other general corporate purposes.
Both the multi-draw and the revolving facilities currently are undrawn.
"We are pleased to make this initial cash distribution to our stockholders,"
said Jerry Barag, CatchMark Timber's chief executive officer and president.
"This distribution is part of our revised business strategy to increase our
annual harvest volume to support distributions to stockholders. We are also
excited about the completion of the refinancing transaction. Our new
multi-draw facility will enable us to pursue an accretive acquisition strategy
to expand our overall holdings."
The multi-draw credit facility may be drawn upon five times during the period
from December 19, 2013 to December 19, 2016. Amounts repaid under the
multi-draw credit facility may be reborrowed prior to December 19, 2016. The
revolving credit facility and the existing term loan will mature on December
19, 2018 and the multi-draw credit facility will mature on December 19, 2020.
The amended and restated credit agreement provides that, with the consent of
the required lenders, the new credit facility may be increased by up to $75
million, consisting of up to a $10 million increase in the revolving credit
facility and the remainder available for incremental term loans.
In connection with CatchMark Timber's transition to self-management on October
25, 2013, CatchMark Timber's board of directors elected Jerry Barag as chief
executive officer and president and John F. Rasor as chief operating officer
and secretary. Mr. Barag has a track record and substantial experience in both
the timberland and commercial real estate industries and brings over 30 years
of real estate and timberland investment experience, including expertise in
acquisitions, divestitures, asset management, property management and
financing. Mr. Rasor has over 45 years of experience in the timberland and
forest products industries, including expertise in forest management, wood
products manufacturing, fiber procurement and log merchandising, sales and
distribution. Messrs. Barag and Rasor were also elected as directors following
the closing of CatchMark Timber's underwritten public offering.
Additionally, CatchMark Timber's board of directors recently made several
modifications to the composition of the board which collectively enhance its
independence. The board of directors elected Willis J. Potts, an independent
director, to serve as chairman of the board. The size of the board was also
increased from five to seven, and the board appointed two new independent
directors, Alan D. Gold and Douglas D. Rubenstein. Since 2004, Mr. Gold has
served as chairman of the board and chief executive officer of BioMed Realty
Trust, Inc., a publicly traded REIT focused on acquiring, developing and
managing laboratory and office space for the life science industry. Prior to
that, Mr. Gold worked with REITs and real estate companies since 1985. Mr.
Rubenstein has been an investment banker since 1985 and has extensive
experience in the real estate industry. Since June 2012, Mr. Rubenstein has
served as senior vice president and director of capital markets and business
strategy for Benjamin F. Edwards & Company, a private, full-service
broker-dealer. Leo F. Wells III and Douglas P. Williams, who are affiliated
with CatchMark Timber's former external advisor, resigned from the board prior
to the effectiveness of CatchMark Timber's underwritten public offering.
About CatchMark Timber
CatchMark Timber Trust, Inc. is a self-administered and self-managed publicly
traded REIT that began operations in 2006 and owns interests in approximately
280,000 acres of timberland located on the Lower Piedmont and Upper Coastal
Plains of East Central Alabama and West Central Georgia.CatchMark Timber owns
approximately 247,200 acres and leases approximately 32,800 additional acres
from third parties. The company is focused exclusively on timberland ownership
and management. CatchMark Timber maintains a website at
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SOURCE CatchMark Timber Trust, Inc.
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