Printer Friendly

PLUM CREEK TIMBER CO., L.P., ANNOUNCES PROPOSAL TO REDEEM DEFERRED PARTICIPATION INTERESTS

 SEATTLE, April 21 /PRNewswire/ -- Plum Creek Timber Co., L.P., (NYSE: PCL) announced today that an independent committee of its board of directors has approved a proposal to authorize the Partnership to redeem the outstanding 1.25 million Deferred Participation Interests (DPIs). Before proceeding with the redemption, approval of the proposal will be sought at a special meeting of the company's unitholders to be held in July 1993.
 The DPIs represent special limited partner interests that currently do not receive quarterly distributions and are not tradable until after June of 1994. The DPIs are held by a partnership controlled by SPO Partners & Co. (SPO). SPO acquired the DPIs and control of Plum Creek's General Partner from Burlington Resources Inc. on Dec. 31, 1992.
 If unitholder approval is obtained, the independent committee of the board of directors would be authorized to negotiate a binding agreement to redeem the DPIs. The proposal also requires that the independent committee obtain an opinion from Merrill Lynch & Co., its financial advisor, that the price is fair to unitholders from a financial point of view. The maximum price, per DPI, will be a discount of $5 from the average trading price of the units during the 20 trading days immediately preceding the binding agreement.
 According to David D. Leland, Plum Creek's chairman, president and chief executive officer, "A redemption of the DPIs presents the company with an attractive investment opportunity.
 "First, the company would be able to redeem a large block of unit equivalents at a discount from the market price.
 "Second, such a redemption would avoid the dilution of the interests of existing unitholders, since the DPIs would otherwise become units in June 1994 and thereafter begin to receive quarterly cash distributions.
 "Finally, we believe that the company has more than adequate financial resources to complete the redemption and also meet all the other needs of the business including maintaining its quarterly distributions."
 A preliminary proxy statement describing the proposal was filed today with the Securities and Exchange Commission. The company expects that the Notice of Special Meeting and Proxy Statement will be mailed to unitholders in late May 1993. The proxy will also cover certain technical amendments to the partnership agreement.
 Plum Creek is one of the largest private forestland owners in the Pacific Northwest.
 -0- 4/21/93
 /CONTACT: Shelley Monfor of Plum Creek, 206-467-3613/
 (PCL)


CO: Plum Creek Timber Co. L.P. ST: Washington IN: PAP SU:

AL-LM -- SE001 -- 8642 04/21/93 10:44 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:414
Previous Article:$195,000 STATE INFRASTRUCTURE GRANT
Next Article:Z/COM WINS PROMOTIONAL POINT-OF-PURCHASE CAMPAIGN FOR LEADING EDGE TELECOMMUNICATIONS COMPANY
Topics:


Related Articles
SPO PARTNERS ACQUIRES INTEREST IN PLUM CREEK TIMBER CO., L.P. FROM BURLINGTON RESOURCES INC.
PLUM CREEK TIMBER CO., L.P., ANNOUNCES RECORD EARNINGS FOR 1992 AND 90-CENTS-PER-UNIT DISTRIBUTION
PLUM CREEK TIMBER CO., L.P., ANNOUNCES INCREASE IN QUARTERLY DISTRIBUTION TO UNITHOLDERS AND HIGHER FIRST QUARTER EARNINGS
PLUM CREEK RESCHEDULES UNITHOLDER VOTE
STATEMENT BY CHARLES P. GRENIER, ROCKY MOUNTAIN REGION VICE PRESIDENT, PLUM CREEK TIMBER CO., L.P.
AMEX TO LAUNCH OPTIONS ON PLUM CREEK TIMBER COMPANY, L.P.
PLUM CREEK TIMBER ANNOUNCEMENT
PLUM CREEK UNIT SPLIT BECOMES EFFECTIVE
PLUM CREEK TIMBER COMPANY, L.P. ANNOUNCES FIRST QUARTER RESULTS DISTRIBUTION TO UNITHOLDERS OF $0.49 PER UNIT
Plum Creek Timber Company, L.P. Announces Non-Binding Letter of Intent to Sell Assets in Northeast Washington and Northern Idaho

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters