Plum Creek Prices New Stock Offering
A previously announced common stock issue from Plum Creek Timber now has a price tag. The company revealed that the 12.1 million shares it is floating in the underwritten public offering are to be sold at $45.00 per share. Also, the issue's underwriters have been granted a 30-day purchase option for up to an additional 1.815 million shares to cover overallotments, if any.
Plum Creek is floating the stock to help finance its recently agreed $1.1 billion acquisition of timberlands and related assets from MeadWestvaco. It will also use some of the monies for "general corporate purposes," including the retirement of nearly $300 million in debt.
The joint book-running managers of the offering are Goldman Sachs and JPMorgan Chase unit J.P. Morgan Securities. The issue is expected to close next Monday.
At the moment, Plum Creek has just under 163 million shares outstanding, and its stock most recently closed at $45.40 per share.
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