Spokane, Washington, USA, 11 June 2009 -- (BUSINESS WIRE) -- Potlatch Corporation (NYSE: PCH) today announced that its obligations under the indenture governing the USD 100 million principal amount of 9-1/8% credit-sensitive debentures, due 01 December 2009, have been fully discharged.
Potlatch's former affiliate, Clearwater Paper Corporation, has deposited with the indenture trustee a sum sufficient to satisfy all remaining principal and interest due on the credit-sensitive debentures. Before Potlatch's spin-off of Clearwater in December 2008, Clearwater agreed to make all remaining payments to holders of the credit sensitive debentures.
“We are pleased that Clearwater has successfully refinanced its debt and has satisfied Potlatch’s obligations on the debentures,” said Michael J. Covey, chairman, president and chief executive officer for Potlatch. “This is a very positive development for both companies and their shareholders.”
Until the 01 December 2009 maturity date of the debentures, the funds deposited with the indenture trustee by Clearwater Paper for payment to the debenture holders will be reflected on Potlatch’s balance sheet as restricted cash. In addition, Potlatch expects that the USD 100 million limitation on availability under the USD 250 million bank credit facility to be removed as a result of the deposit with the indenture trustee of funds sufficient to satisfy its obligations on the debentures.
Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.6 million acres of timberland in Arkansas, Idaho, Minnesota, and Wisconsin. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.