Potlatch Corporation has closed the previously announced purchase of approximately 201,000 acres of timberlands in Alabama and Mississippi from affiliates of Resource Management Service, LLC for $384 million.

Logs

Potlatch completes timberland acquisition in Alabama and Mississippi

Dec 08, 2014. /Lesprom Network/. Potlatch Corporation has closed the previously announced purchase of approximately 201,000 acres of timberlands in Alabama and Mississippi from affiliates of Resource Management Service, LLC for $384 million.

The timberland acquisition was financed using cash and $310 million of new long-term debt. Moody's confirmed its Baa3 investment grade debt rating with a stable outlook earlier this week.

"We are very pleased to complete the acquisition of high quality timberlands in Alabama and Mississippi," said Michael Covey, chairman and CEO. "Because we expect the acquisition to be immediately accretive to funds available for distribution and our performance continues to be strong, we are increasing our dividend a second time, or more than 20%, since the 3Q 2013. Our goal remains to grow the dividend sustainably over time," concluded Mr. Covey.

Potlatch is a Real Estate Investment Trust with approximately 1.6 million acres of timberland in Alabama, Arkansas, Idaho, Minnesota and Mississippi. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources.