Toronto, November 04, 2013 -- Weyerhaeuser Company's (Weyerhaeuser, Baa3 stable) announcement that it will spin out and combine most of its homebuilding subsidiary, Weyerhaeuser Real Estate Company (WRECO), with Tri Pointe Homes (TPH, unrated) will modestly increase leverage if Weyerhaeuser does not use a significant portion of the cash received from the transaction to reduce its debt. Moody's estimates that Weyerhaeuser would need to reduce debt by about $500 million (about 70% of the expected transaction proceeds) for the proforma adjusted leverage (adjusted debt to EBITDA at September 2013 proforma for the recent Longview Timber Holdings acquisition, adjusted per Moody's standard definitions) to remain essentially unchanged at about 4x.

Vollständigen Artikel bei Moodys lesen