CatchMark Timber Trust Inc. kicked off a class A common stock offering and detailed its planned and completed acquisitions.
The underwritten public offering comprises 4.0 million shares of the company's class A common stock. The company expects to grant a 30-day overallotment option to the underwriters to acquire up to 600,000 additional shares.
Based on CatchMark's closing stock price of $13.04 per share on Oct. 12, gross proceeds, including the overallotment option, are expected to come to about $60.0 million.
The company also agreed to purchase 14,923 acres of prime timberlands near Georgia's southeast coast for $43.3 million in a deal set to close by 2017-end. The transaction includes 72% pine plantations with stocking of 81 tons per acre.
Additionally, CatchMark bought 4,641 acres of premier timberlands in southeastern South Carolina for $10.9 million. The company financed the transaction via its multidraw term credit facility.
Raymond James, Stifel and RBC Capital Markets are the joint book-running managers, while FBR Capital Markets & Co. is the lead manager for the public offering.