In connection with the refinancing, the company entered into an amended and restated credit agreement that provides for a multi-draw term credit facility of up to $150 million and a revolving credit facility of up to $15 million. The multi-draw credit facility may be used to finance domestic timber acquisitions and associated expenses and the revolving credit facility may be used for working capital, to support letters of credit and other general corporate purposes. Both the multi-draw and the revolving facilities currently are undrawn.
"We are pleased to make this initial cash distribution to our stockholders," said Jerry Barag, CatchMark Timber's CEO and president. "This distribution is part of our revised business strategy to increase our annual harvest volume to support distributions to stockholders. We are also excited about the completion of the refinancing transaction. Our new multi-draw facility will enable us to pursue an accretive acquisition strategy to expand our overall holdings."
The multi-draw credit facility may be drawn upon five times during the period from December 19, 2013 to December 19, 2016. Amounts repaid under the multi-draw credit facility may be reborrowed prior to December 19, 2016. The revolving credit facility and the existing term loan will mature on December 19, 2018 and the multi-draw credit facility will mature on December 19, 2020. The amended and restated credit agreement provides that, with the consent of the required lenders, the new credit facility may be increased by up to $75 million, consisting of up to a $10 million increase in the revolving credit facility and the remainder available for incremental term loans.
CatchMark Timber Trust, Inc. is a self-administered and self-managed publicly traded REIT that began operations in 2006 and owns interests in approximately 280,000 acres of timberland located on the Lower Piedmont and Upper Coastal Plains of East Central Alabama and West Central Georgia. CatchMark Timber owns approximately 247,200 acres and leases approximately 32,800 additional acres from third parties. The company is focused exclusively on timberland ownership and management.