Rayonier greenshoe lifts 3.75% senior unsecured exchangeables to $300 million

By Devika Patel

Knoxville, Tenn., Oct. 17 - Rayonier Inc. exercised a $50 million over-allotment option in full on its 3.75% issue of senior unsecured exchangeable bonds due Oct. 15, 2012, increasing the size of the issue to $300 million, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, the company sold $250 million of the notes on Oct. 10 after the market close. The issue has a conversion price is $54.81, a conversion ratio of 18.2433 and an initial conversion premium at the time of 22%.

The notes have a 3.75% coupon, with interest payable semiannually on April 15 and Oct. 15 of each year, beginning on April 15, 2008.

The exchangeables have no calls or puts. There is full takeover and dividend protection and a contingent conversion subject to a 130% hurdle.

Rayonier is a real estate investment trust, timberland management and cellulose fiber producer based in Jacksonville, Fla. The company plans to use the proceeds to pay down debt, to enter into exchangeable note hedge and warrant transactions and for general corporate purposes.

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