Rayonier announced that it had commenced an underwritten public offering of 5,000,000 common shares. The company expects to grant the underwriters an additional option for a period of 30 days to purchase up to an additional 750,000 common shares.
According to the announcement, the company intends to use the net proceeds from the offering, including any net proceeds from the underwriters’ exercise of the option to purchase additional shares, to finance a portion of the company’s acquisition of approximately 95,100 acres of high-quality industrial timberlands in Florida, Georgia and South Carolina, through three transactions with separate sellers, and the remainder, if any, for general corporate purposes.
Morgan Stanley and Raymond James are acting as the book-running managers and representatives of the underwriters for the offering.
Earlier Rayonier Inc reached an agreement in principle to settle the securities class action litigation pending against it in the US District Court for the Middle District of Florida, In re Rayonier Inc.
The company is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. Rayonier owns, leases or manages approximately 2.7 million acres of timberlands located in the U.S. South, U.S. Pacific Northwest and New Zealand.