Weyerhaeuser amends MeadWestvaco note to align covenants with loans

By Marisa Wong

Morgantown, W.Va., May 5 – Weyerhaeuser Co. entered into an assumption and amendment agreement on April 28 with wholly owned subsidiary Plum Creek Timberlands, LP and MeadWestvaco Note Holding Co. II, LLC. The agreement amends the $860 million installment note made by Plum Creek to MeadWestvaco on Dec. 16, 2013.

The amendment modifies the affirmative and negative covenants and some other provisions of the installment note to make them consistent with corresponding provisions in Weyerhaeuser’s outstanding term loan agreements and its 2013 revolving credit facility agreement.

Weyerhaeuser also agreed to assume all of Plum Creek’s obligations under the installment note, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended note, key covenants include requirements to maintain a minimum defined net worth of $3 billion, a defined debt-to-capital ratio of 65% or less and ownership of, or long-term leases on, no less than four million acres of timberlands.

Weyerhaeuser is a timber company based in Federal Way, Wash.

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