Vancouver, British Columbia, Canada, 08 December 2008 -- /PRNewswire/ -- TimberWest Forest Corp today announced that RiskMetrics Group - ISS Governance Services (ISS), Canada's leading independent proxy advisory firm, published a report recommending that unitholders of TimberWest support the proposed amendments to the terms of the subordinate note indenture under which the subordinate notes forming part of the stapled units were issued. These amendments would, among other things, change the rate of interest on the subordinate notes from a fixed rate to a variable rate, to be set from time to time based on TimberWest's distributable cash.
The key advantage of the proposed variable rate structure is that unitholders will earn taxable interest income that better reflects the underlying cash generated by TimberWest's businesses, which is currently materially less than the CAD 1.08 per stapled unit level. If the proposed amendments are not adopted, unitholders will continue to accrue taxable interest income at CAD 1.08 per stapled unit level even if they are not receiving cash distributions at that level. In addition, TimberWest will be required to record this higher level of accrued interest as a liability on its balance sheet until such amounts are paid.
A resolution approving the amendments will be considered at the special meeting of unitholders to be held on 19 December 2008. TimberWest's board of directors has determined that it is in the best interests of TimberWest and recommends that TimberWest unitholders vote in favor of the amendments at the meeting.
Shareholders can vote by phone, Internet, or mail, and instructions can be found in the information circular that was mailed to unitholders in November and which is available at TimberWest's profile on SEDAR at www.sedar.com. If unitholders have questions about voting or other matters relating to the meeting, they can contact TimberWest's proxy solicitor, Laurel Hill Advisory Group, LLC, toll-free at 1-(866) 588-7129. Proxies must be received no later than 10:00 a.m. (Pacific Time) on 17 December 2008.
TimberWest Forest Corporation (www.timberwest.com
) is western Canada's largest private land management company. The company owns in fee simple approximately 322,000 hectares or 796,000 acres of private land and generates distributable cash for unitholders from the sale of timber products and real estate.
Stapled Units of TimberWest Forest Corp. are traded on the Toronto Stock Exchange under the symbol: TWF.UN