Weyerhaeuser Declares Special Dividend, Marks Milestone in Planned REIT Conversion
Weyerhaeuser Company (NYSE:WY) today announced the board of directors
has declared a special dividend of $5.6 billion. This marks a major
milestone in the company′s plan to convert to a real estate investment
trust (REIT) by distributing its earnings and profits to shareholders.
The special dividend includes the regular quarterly dividend of
approximately $11 million and is payable to shareholders of record as of
July 22, 2010. Weyerhaeuser expects to pay the special dividend on Sept.
1, 2010.
Shareholders can elect stock or cash for the special dividend, with the
total cash payment limited to 10 percent, or $560 million, of the total
distribution. If cash elections exceed the approved amount, shareholders
will receive a pro-rata amount of their distribution in cash and the
remaining portion in stock.
'Today′s announcement represents the final major step in executing our
plan to convert to a REIT,? said Dan Fulton, president and chief
executive officer. 'The REIT structure best supports our strategic
direction and positions Weyerhaeuser for future growth. The tax
efficiency of the REIT structure also will enable us to increase our
timberland earnings and make higher distributions to our shareholders.?
A company makes a REIT election when it files the tax return for the
effective year. Weyerhaeuser intends to make the REIT election when it
files its 2010 tax return in 2011. The election would be effective
beginning Jan. 1, 2010.
The company will file a prospectus later this week covering the
securities that will be issued in the special dividend. The prospectus
will contain a full description of the special dividend, including key
dates.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world′s largest forest products
companies, began operations in 1900. We grow and harvest trees, build
homes and make a range of forest products essential to everyday lives.
We manage our timberland on a sustainable basis in compliance with
internationally recognized forestry standards. At the end of 2009, we
employed approximately 14,900 employees in 10 countries. We have
customers worldwide and generated $5.5 billion in sales in 2009. Our
stock trades on the New York Stock exchange under the symbol WY.
Additional information about us is available at http://www.weyerhaeuser.com.
INVESTOR CALL
Weyerhaeuser will hold a live conference call at 5:30 a.m. Pacific (8:30
a.m. Eastern) on July 12 to discuss today′s announcement.
To access the conference call from within North America, dial (877)
296-9413 (access code ? 84047456) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 84047456). Replays will be available for one week at
(800) 642-1687 (access code ? 84047456) from within North America and at
1-(706) 645-9291 (access code ? 84047456) from outside North America.
The call is being webcast through Weyerhaeuser′s Internet site at http://investor.weyerhaeuser.com
and is accessible by selecting the 'Special Dividend? link.
The webcast is available through the Thomson StreetEvents Network to
both institutional and individual investors. Individual investors can
listen to the call at http://www.fulldisclosure.com,
Thomson′s individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson′s
password-protected site, StreetEvents (http://www.streetevents.com).
Weyerhaeuser Company
Media ? Bruce Amundson, 253-924-3047
Analysts
? Kathryn McAuley, 253-924-2058
