A partnership led by CatchMark Timber Trust Inc. agreed to buy 1.1 million acres of East Texas timberlands for roughly $1.39 billion, with the timber real estate investment trust's investment to total up to $227.5 million.
Campbell Global is selling the property on behalf of the property owners to a joint venture that also includes BTG Pactual Timberland Investment Group, Highland Capital Management, Medley Management Inc. and an undisclosed Canadian institutional investor. The deal is expected to close within 45 to 60 days.
Under the deal terms, CatchMark COO John Rasor will become president of the newly formed joint venture company, to be called TexMark Timber Treasury. Todd Reitz, CatchMark's senior vice president of forest resources, will oversee operations for the company's existing properties.
CatchMark said it will finance its share of investment through borrowings under its multidraw term loan and cash on hand. CoBank ACB will be the agent for a lender syndicate and provide a $750 million financing facility, with up to $650 million to be funded at closing.
Raymond James was the financial adviser to CatchMark, with Alston & Bird LLP and Smith Gambrell & Russell LLP serving as legal advisers.
Gibson Dunn and Proskauer Rose were the legal advisers to the group of institutional investors. Perella Weinberg Partners LP was the financial adviser, and Greenberg Traurig LLP, Schwabe, Williamson & Wyatt and Polsinelli PC were the legal advisers to Campbell Global and its institutional investors.