Back to top

Analyst Blog

In an effort to raise funds from the capital market, Weyerhaeuser Company (WY - Analyst Report), recently announced the public offering of its common shares and convertible preference shares. The offering will be completed on Jun 24, 2013, subject to closing conditions.

The offerings include approximately 29 million of Weyerhaeuser’s common shares and 12 million of its 6.375% Mandatory Convertible Preference Shares. The common shares have been priced at $27.75 per share, while the price for Convertible Preference Shares has been fixed at $50.00 per share.

In addition to these public offerings, Weyerhaeuser will allow the underwriters to purchase up to 4.35 million common shares and 1.8 million of Mandatory Convertible Preference Shares.

These common shares and preference shares offerings are likely to fetch Weyerhaeuser roughly $805 million of gross proceeds and $581 million in net proceeds or $668 million if the underwriters exercise their option.

Weyerhaeuser intends to use the proceeds from these offerings to fund the acquisition of Longview Timber LLC from Brookfield Asset Management Inc. The $2.65 billion transaction will add approximately 645,000 acres of timberland to the company’s Washington and Oregon asset base.

Post the acquisition, the company’s timberland assets in Pacific Northwest will reach 2.6 million acres, up 33%, while Weyerhaeuser’s total ownership of the U.S. timberlands will be roughly 6.6 million acres. The transaction is expected to be completed by Jul 2013 and is subject to closing conditions.

Weyerhaeuser currently carries a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Boise Cascade Company (BCC - Snapshot Report), Potlatch Corporation (PCH - Snapshot Report) and Universal Forest Products Inc. (UFPI - Analyst Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
FELCOR LODG… FCH 10.50 +3.75%
VASCO DATA… VDSI 13.68 +1.48%
OLD DOMINIO… ODFL 63.52 +1.24%
LENOVO GROU… LNVGY 27.17 +0.41%
GENTIVA HEA… GTIV 18.21 +0.33%