In an effort to raise funds from the capital market,
), recently announced the public offering of its common shares
and convertible preference shares. The offering will be completed
on Jun 24, 2013, subject to closing conditions.
The offerings include approximately 29 million of Weyerhaeuser's
common shares and 12 million of its 6.375% Mandatory Convertible
Preference Shares. The common shares have been priced at $27.75
per share, while the price for Convertible Preference Shares has
been fixed at $50.00 per share.
In addition to these public offerings, Weyerhaeuser will allow
the underwriters to purchase up to 4.35 million common shares and
1.8 million of Mandatory Convertible Preference Shares.
These common shares and preference shares offerings are likely to
fetch Weyerhaeuser roughly $805 million of gross proceeds and
$581 million in net proceeds or $668 million if the underwriters
exercise their option.
Weyerhaeuser intends to use the proceeds from these offerings to
fund the acquisition of Longview Timber LLC from Brookfield Asset
Management Inc. The $2.65 billion transaction will add
approximately 645,000 acres of timberland to the company's
Washington and Oregon asset base.
Post the acquisition, the company's timberland assets in Pacific
Northwest will reach 2.6 million acres, up 33%, while
Weyerhaeuser's total ownership of the U.S. timberlands will be
roughly 6.6 million acres. The transaction is expected to be
completed by Jul 2013 and is subject to closing conditions.
Weyerhaeuser currently carries a Zacks Rank #2 (Buy). Other
stocks to watch out for in the industry are
Boise Cascade Company
Universal Forest Products Inc.
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WEYERHAEUSER CO (WY): Free Stock Analysis
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