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CatchMark Timber ups availability under revolver, multi-draw term loan
By Marisa Wong
Madison, Wis., June 2 - CatchMark Timber Trust, Inc. entered into a joinder and amendment agreement to its third amended and restated credit agreement dated Dec. 19, 2013 to increase the availability under its revolving credit facility to $25 million from $15 million and the availability under its multi-draw term credit facility to $215 million from $150 million, according to an 8-K filing with the Securities and Exchange Commission.
The amendment, completed on Friday through borrowers Timberlands II, LLC and CatchMark Timber Operating Partnership, LP, adds CatchMark Texas Timberlands GP, LLC and CatchMark Texas Timberlands, LP as additional loan parties.
The amended credit agreement also permits the company to make six, rather than five, draws under the multi-draw term loan.
In addition, the amendment provides the company with greater flexibility to use proceeds from land sales for general working capital, acquisitions of additional timberland or permitted distributions or other payments. The company may use proceeds totaling up to 1.5% of the aggregate cost basis of its timberland if its loan-to-value ratio is in excess of 30% but less than 40% and up to 2% of the aggregate cost basis if its loan-to-value ratio does not exceed 30%.
Finally, the amendment expands the permitted uses of proceeds under the revolver to include certain earnest money deposits and acquisitions of domestic timberland of up to $3 million, or $4 million with the administrative agent's consent.
CoBank is the administrative agent, lead arranger and bookrunner under the credit agreement with RaboBank as documentation agent and Agfirst Farm Credit Bank as syndication agent.
The real estate investment trust is based in Atlanta.
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