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Matariki Forestry Group announces recapitalisation


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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