Longview Fibre to start roadshow Wednesday for $150 million 10-year notes

By Paul A. Harris

St. Louis, Feb. 28 - Longview Fibre Co. will start a roadshow Wednesday for its $150 million offering of 10-year senior notes (B1/BB-), according to an informed source.

The roadshow is scheduled to conclude on March 13.

Goldman Sachs and Banc of America Securities LLC are joint bookrunners for the notes, which have been registered with the Securities and Exchange Commission. Merrill Lynch & Co., Scotia Capital and Wells Fargo Securities are co-managers.

The notes will come with five years of call protection.

The company will also make a concurrent offering of common stock.

Proceeds will be used to fund the tender for $215 million of the company's outstanding senior subordinated notes, as well as to fund the approximately $72 million cash portion of a special taxable distribution to shareholders in connection with the company's conversion to a real estate investment trust and pay an estimated $12.2 million of fees and expenses relating to the REIT conversion. Any remaining proceeds will be used for working capital and other general corporate purposes, which may include, among other things, debt repayment and financing of timberland acquisitions.

Longview Fibre is a diversified timberlands owner and manager, and a specialty paper and container manufacturer based in Longview, Wash.

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