Alongside its Q3 earnings report, Potlatch (NASDAQ:PCH) agrees to buy 201K acres of timberlands in Alabama and Mississippi for $384M. Th deal is expected to close this year.
The purchase will expand the company's southern ownership by two states and by nearly 50% in acreage (Potlatch already is in Arkansas). Total acreage under management will increase to nearly 1.6M acres.
The deal is expected to be immediately accretive to funds available for distribution per share.
The details aren't yet available as no filings have been made with the SEC, but Potlatch (PCH +0.2%) last night announced the closing of an amended and restated $250M senior unsecured credit line. It matures in 2020 and includes an option to increase it by up to another $250M.
"We are pleased to secure improved pricing and other terms that reflect Potlatch's status as an investment-grade issuer," says CFO Jerry Richards.