JOE Transfers Certain Pension Plan Liabilities, Improves Funded Ratio
and Reduces Risk
The St. Joe Company (NYSE:JOE) today announced that it has executed and
funded a commitment letter to annuitize approximately $93 million of
Pension Plan liabilities by transferring approximately $101 million of
Pension Plan assets to Massachusetts Mutual Life Insurance Company for
the benefit of the retired participants and certain other former
employee participants in the Pension Plan. Current employees and those
former employees with cash balances in the Pension Plan are not affected
by the transaction.
“This annuitization of Pension Plan liabilities is consistent with our
strategy to reduce JOE’s risk profile. Following the completion of this
annuitization, the funded ratio in the Pension Plan will increase from
approximately 145 percent to approximately 260 percent, which
significantly reduces the risk that we will be required to fund the
Pension Plan in the future,” said William S. McCalmont, JOE’s EVP and
Chief Financial Officer.
At May 31, 2009 the Pension Plan had assets of $174 million, liabilities
of $121 million and a funded ratio of approximately 145 percent.
Following the completion of this annuitization the Pension Plan is
expected to have assets of approximately $73 million, liabilities of
approximately $28 million and a funded ratio of approximately 260
percent.
The transaction is expected to result in a pre-tax non-cash charge for
the second quarter of 2009 of approximately $43 million as more fully
described in a Form 8-K to be filed with the U.S. Securities and
Exchange Commission today.
The estimates above are based on actuarial calculations as of May 31,
2009, which will change through June 30, 2009, the measurement date for
accounting purposes.
The St. Joe Company (NYSE: JOE), a publicly held company based in
Jacksonville, is one of Florida's largest real estate development
companies and Northwest Florida's largest private landowner. We are
primarily engaged in real estate development and sales, with significant
interests in timber. More information about JOE can be found at our web
site at www.joe.com.
Forward-Looking Statements
Statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements about our
beliefs, plans, goals, expectations and intentions. Forward-looking
statements involve risk and uncertainty, and there can be no assurance
that the results described in such statements will be realized. Such
statements are based on our current expectations and we undertake no
obligation to publicly update or reissue any forward-looking statements.
Risk factors that may cause the actual results to differ are described
in this press release and in various documents we have filed with the
U.S. Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2008, and our Quarterly
Reports on Form 10-Q.
© 2009, The St. Joe Company. “St. Joe,” “JOE” and the "Taking Flight"
design are service marks of The St. Joe Company.
The St. Joe Company
St. Joe Media Contact: Jerry M. Ray,
904-301-4430
jray@joe.com
or
St.
Joe Investor Contact: David Childers, 904-301-4302
dchilders@joe.com
