Matariki Forestry Group announces recapitalisation
Matariki Forestry Group (“Matariki”) today announced a NZ$242 million capital infusion from Rayonier Inc., its largest
shareholder. This injection of capital will be used for the repayment of all outstanding amounts under its existing
NZ$235 million credit facility and for general corporate purposes.
Upon completion of this capital infusion, Rayonier’s ownership in Matariki will increase from 65% to approximately 77%
and the Phaunos Timber Fund ownership will be reduced from 35% to approximately 23%. The capital infusion is subject to
certain closing conditions including New Zealand Overseas Investment Office approval and is expected to close by year
end. Matariki will realise interest cost savings of approximately NZ$15 million annually as a result of the
recapitalisation.
David Nunes President and CEO of Rayonier Inc said: “The recapitalisation of the Matariki Joint Venture will increase
Rayonier’s ownership position in a strategic asset, simplify the company’s capital structure, provide material interest
cost savings, and enhance strategic flexibility going forward.”
Sir Harry Studholme, Chair of the Phaunos Timber Fund said: “We welcome the continued support and investment from
Rayonier as it will give the Matariki Joint Venture substantial flexibility to pursue new opportunities in New Zealand
and greatly reduce dividend volatility to shareholders.”
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