Plum Creek Timberlands, L.P. - the operating partnership
Plum Creek Timber Company, Inc.
), a real estate investment trust (REIT), has recently priced an
underwritten public offering of $325 million worth of 3.25%
senior unsecured notes. The notes are scheduled to mature in
March 2023 to yield 3.34% to maturity.
PLUM CREEK TMBR (PCL): Free Stock Analysis
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The net proceeds from the offering are expected to be utilized by
the operating partnership to repay notes maturing in 2013. The
operating partnership intends to invest a major part of the
proceeds in marketable securities or short term investments. The
balance will be utilized in repayments of outstanding borrowings
under its revolving credit facility.
At the end of third quarter 2012, Plum Creek had cash and cash
equivalents of $320 million and total long-term debt of $1.6
Plum Creek owns one of the largest and most geographically
diversified private timberland in the U.S. The company produces
lumber, plywood and medium density fiberboard in its wood
products manufacturing facilities.
Plum Creek's diversified timber and land base provides excellent
operational flexibility to respond to changing market conditions
amid challenging macroeconomic environment. In addition, the
upsurge in demographic trends driving housing markets and demand
for real estate properties across the nation provides a strong
economic backdrop for the company and an opportunity to
demonstrate solid financial performance in the future.
Plum Creek currently retains a Zacks #5 Rank, which translates
into a short-term Strong Sell rating. We are also maintaining our
long-term Neutral recommendation on the stock. One of its
) holds a Zacks #2 Rank which translates into a short-term Buy