Daily News: December 14, 2015

CoBank, AgFirst Farm Credit Upsize CatchMark Facility to $365MM


CatchMark Timber Trust announced the expansion of its multi-draw term credit facility, increasing the maximum availability of funds by $90 million from $275 million to $365 million.

The increase in available funds from CoBank, ACB and AgFirst Farm Credit Bank provides ready capital for CatchMark to pursue acquisitions of high quality timberlands to support long-term growth in shareholder value and cash available for distribution.

CoBank served as administrative agent, joint lead arranger, sole bookrunner, swingline lender and issuing lender. AgFirst Farm Credit Bank, served as joint lead arranger and syndication agent, and Cooperatieve Centrale Raiffelsen-Boerenleenbank, served as documentation agent.

CatchMark’s total credit facility increases to approximately $500 million as a result of the refinancing, which includes an unfunded $35 million revolving line of credit and a $100 million term loan. Currently, $85 million is outstanding under the multi-draw term facility.

During the fourth quarter to date, CatchMark completed two acquisitions in Georgia, North Carolina, South Carolina, Tennessee and Texas, totaling approximately 25,200 acres for $46.9 million, including transaction costs. The acquisitions added 1.2 million tons to its merchantable timber inventory, comprised of 86% pine plantations by acreage and 46% saw timber by tons.

Jerry Barag, president and CEO of CatchMark, said: “The increase in the facility positively demonstrates our strong underlying asset values and augments our credit capacity to take advantage of transactions to expand our holdings of well stocked timberlands for growing sustainable harvest volumes and timber sales revenues.”

Atlanta-based CatchMark Timber Trust is an owner and operator of timberland located in Alabama, Florida, Georgia, Louisiana and Texas.