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Plum Creek Retires USD 463 Million of Debt
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Seattle, Washington, USA, 05 January 2011 -- (BUSINESS WIRE) -- Plum Creek (NYSE:PCL) announced that it has used the proceeds from its recent USD 575 million, 4.7% bond issuance to prepay USD 463 million of debt.

The company completed the early retirement of an aggregate of USD 213 million of private placement notes scheduled to mature during the fourth quarter of 2011. The company retired USD 37 million of 7.97% notes and USD 176 million of 7.66% notes. In addition, the company has prepaid, in full, its USD 250 million term credit agreement scheduled to mature in June 2012 that carried an interest rate of LIBOR plus 1%.

The company expects to record a one-time charge of USD 13 million (approximately USD 0.08 per diluted share) in the fourth quarter of 2010 for debt retirement costs. Prepayment of the private notes will reduce the company's interest expense by approximately USD 14 million.

"During the past month we've renewed our credit facility and completed these debt prepayments. 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 www.plumcreek.com.

 

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