Potlatch Corporation (NYSE: PCH) today announced that its obligations
under the indenture governing the $100 million principal amount of 9-1/8
percent credit sensitive debentures, due December 1, 2009, have been
fully discharged.
Potlatch's former affiliate, Clearwater Paper Corporation, has deposited
with the indenture trustee a sum sufficient to satisfy all remaining
principal and interest due on the credit sensitive debentures. Prior to
Potlatch's spin-off of Clearwater in December 2008, Clearwater agreed to
make all remaining payments to holders of the credit sensitive
debentures.
“We are pleased that Clearwater has successfully refinanced its debt and
has satisfied Potlatch’s obligations on the debentures,” said Michael J.
Covey, chairman, president and chief executive officer for Potlatch.
“This is a very positive development for both companies and their
shareholders.”
Until the December 1, 2009 maturity date of the debentures, the funds
deposited with the indenture trustee by Clearwater Paper for payment to
the debenture holders will be reflected on Potlatch’s balance sheet as
restricted cash. In addition, we expect the $100 million limitation on
availability under our $250 million bank credit facility to be removed
as a result of the deposit with the indenture trustee of funds
sufficient to satisfy its obligations on the debentures.
ABOUT POTLATCH
Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.6
million acres of timberland in Arkansas, Idaho, Minnesota and Wisconsin.
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.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements within the
meaning of the Private Litigation Reform Act of 1995 as amended,
including without limitation statements about borrowing availability
under our bank credit facility. These forward-looking statements are
based on current expectations, estimates, assumptions and projections
that are subject to change, and actual results may differ materially
from the forward-looking statements. Factors that could cause Potlatch's
actual results to differ materially include those risks and
uncertainties described from time to time in Potlatch's public filings
with the Securities and Exchange Commission. These forward-looking
statements are made as of the date hereof and Potlatch does not
undertake to update any forward-looking statements.
Potlatch Corporation
Media:
Mark Benson, 509-835-1513
or
Investors:
Eric
Cremers, 509-835-1521
