FEDERAL WAY, Wash., June 29, 2016 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced that the Company's outstanding 6.375% Mandatory Convertible Preference Shares, Series A ("Preference Shares") will convert into Weyerhaeuser common shares effective July 1, 2016 ("Mandatory Conversion Date") at a rate of 1.6929 Weyerhaeuser common shares per Preference Share. No action by holders of Preference Shares is required.
The company anticipates issuing a total of approximately 23 million Weyerhaeuser common shares in conjunction with the conversion, based on approximately 13.8 million Preference Shares outstanding as of June 28, 2016.
No fractional common shares will be issued upon conversion of the Preference Shares. In lieu of fractional common shares, holders of the Preference Shares will be entitled to receive an amount in cash to be computed based on a rate of $28.1226 per common share.
In accordance with the terms of the Preference Shares, the number of Weyerhaeuser common shares issuable on conversion of the Preference Shares was determined based on the average of the volume weighted average price of Weyerhaeuser common shares over the 20-trading-day period beginning June 1, 2016 and ending on June 28, 2016.
Newly issued common shares will be included in the company's basic share count. Preference Shares were previously not included in the company's calculation of diluted share count because they were anti-dilutive.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 13 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2015, Weyerhaeuser and Plum Creek, on a combined basis, generated approximately $8.5 billion in net sales and employed nearly 14,000 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
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SOURCE Weyerhaeuser Company