Weyerhaeuser Real Estate plans to issue $800 million debt securities

By Angela McDaniels

Tacoma, Wash., Jan. 9 - Weyerhaeuser Real Estate Co. plans to issue $800 million of debt securities in connection with its acquisition by Tri Pointe Homes, Inc., according to an S-4 filing with the Securities and Exchange Commission.

Other funding will come from Tri Pointe's $175 million revolving credit facility.

Tri Pointe agreed to acquire Weyerhaeuser Real Estate from Federal Way, Wash.-based Weyerhaeuser Co. in a $2.7 billion deal expected to close in the second quarter.

If the amount of debt securities that Weyerhaeuser Real Estate sells is less than $800 million, it will obtain a one-year senior bridge loan in an amount equal to $800 million minus the amount of debt securities issued.

Deutsche Bank AG, Cayman Islands Branch and Citigroup Global Markets Inc. agreed to provide the bridge loan.

Tri Pointe is a homebuilder based in Irvine, Calif.

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