FEDERAL WAY, WA -- Weyerhaeuser Company (NYSE: WY) announced June 17 that it intends to offer 10,000,000 of its Mandatory Convertible Preference Shares, Series A in a registered public offering, subject to market and other customary conditions.
The offering price is expected to be $50.00 per share. The Company intends to grant the underwriters of the offering the option to purchase up to an additional 1,500,000 of its Mandatory Convertible Preference Shares.
Unless converted earlier, each Mandatory Convertible Preference Shares will convert automatically into a variable number of shares of the Company's common stock on July 1, 2016. The conversion rate will be determined by the price of the Company's common shares on that date. The dividend rate and the conversion terms of the Mandatory Convertible Preference Shares will be determined by negotiations between the Company and the underwriters.
The Company intends to use the net proceeds of the offering, if completed, as partial consideration, to finance the previously announced acquisition of all of the equity interests in Longview Timber LLC.
Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are the joint book-running managers on the offering.
About Weyerhaeuser Company
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 6 million acres of timberlands, primarily in the U.S., and manage another 13.9 million acres under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2012, we generated $7.1 billion in sales and employed approximately 13,200 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our stock trades on the New York Stock Exchange under the symbol WY.
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