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CatchMark-Led Consortium Closes Acquisition of Texas Timberlands for USD 1.39bn
Thursday 12 July 2018

12 July 2018 - With a consortium of institutional investors, Atlanta, US-based REIT CatchMark Timber Trust, Inc. (NYSE: CTT) has closed the acquisition of 1.1m acres of prime East Texas timberlands from Oregon, US-based investment services group Campbell Global for approximately USD 1.39bn, the company said.

The approximately USD 1.39bn transaction has been structured by Campbell Global as a sale of the general and limited partnership interests of the entities that own the timberland assets.

CatchMark will fund its investment of up to USD 227.5m in the joint venture through borrowings under its multi-draw term loan and cash on hand. CoBank ACB will act as the agent for a lender syndicate and provide a USD 750m financing facility, of which up to USD 650m will be funded at closing.

The consortium includes BTG Pactual Timberland Investment Group, Highland Capital Management, Medley Management Inc., and a major Canadian institutional investor.

The property is being sold by Campbell Global, on behalf of the institutional owners of the property, in a transaction expected to be completed within 45 to 60 days, subject to customary closing conditions.

For an investment of up to USD 227.5m, CatchMark will more than triple the number of acres under its control and management to approximately 1.6m acres.

CatchMark Timber Trust, Inc. (NYSE: CTT) is a self-administered and self-managed, publicly-traded REIT focussed exclusively on timberland ownership.

The company owns interests in approximately 514,100 acres of timberlands located in Alabama, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas.

Forest Resource Consultants and American Forest Management will execute land management and accounting functions on the Triple T Timberlands, respectively, as they do at other CatchMark-owned properties.

Raymond James acted as financial advisor to CatchMark in the transaction; Alston and Bird LLP and Smith Gambrell and Russell, LLP served as legal advisors to CatchMark. Gibson Dunn and Proskauer Rose served as legal advisors to the group of institutional investors.

Perella Weinberg Partners LP acted as financial advisor and Greenberg Traurig, LLP, Schwabe, Williamson and Wyatt and Polsinelli PC served as legal advisors to Campbell Global and its institutional investors in the transaction.
Date Published: 12/07/2018
Target: 1.1 m acres of prime,  East Texas timberlands
Country: USA
Deal Size: 1.39bn (USD)
Sector: Agriculture/Forestry
Type: LBO
Financing: Cash
Status: Closed
Vendor: Campbell Global
Buyer: CatchMark Timber Trust
Buyer Advisor: Raymond James,   , Alston and Bird , Smith Gambrell and Russell , Gibson Dunn , Proskauer Rose