Unit of MAXXAM Inc. to Offer Notes

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>Date: Fri, 19 Jun 1998 00:05:17 -0800
>To: Headwaters Forest Coordinating Council <HFCC@lists.sanmateo.org>
>From: Mark Bult <mark@enews.org>
>Subject: Unit of MAXXAM Inc. to Offer Notes
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>Thursday, June 18 4:30 PM ET
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>
>Unit of MAXXAM Inc. to Offer Notes
>
>HOUSTON (BUSINESS WIRE) - MAXXAM Inc. announced plans to refinance the
>existing debt of its wholly owned forest products operations with an
>offering of three new classes of timber collateralized notes by a new
>subsidiary, Scotia Pacific Company LLC.
>
>The three new classes aggregate an estimated $860 million principal amount
>and are expected to be rated investment grade. The final size and maturity
>of each class will be determined after a marketing period and will be based
>upon then-existing market conditions.
>
>The new subsidiary will be the successor by merger to Scotia Pacific
>Holding Company (a wholly owned subsidiary of The Pacific Lumber Company)
>and will also receive certain additional timberlands and timber harvesting
>rights from Pacific Lumber in connection with the offering.
>
>The proceeds of the new timber notes would be used to retire (i) all the
>outstanding $309.2 million principal amount of the 7.95% Timber
>Collateralized Notes of Scotia Pacific Holding Company, (ii) all the
>outstanding $235.0 million principal amount of the 10 1/2% Senior Notes of
>Pacific Lumber, and (iii) all the outstanding $225.7 million aggregate
>principal amount of the 11 1/4% Senior Secured Notes and the 12 1/4% Senior
>Secured Discount Notes of MAXXAM Group Inc. (MGI), and to pay a dividend of
>approximately $15 million to MGI's parent, MAXXAM Group Holdings Inc.
>(MGHI).
>
>Consummation of the offering is a condition to, and is conditioned upon,
>the successful completion of a related consent solicitation to be made to
>the holders of MGHI's 12% Senior Secured Notes.
>
>The new timber notes to be offered have not been registered under the
>Securities Act of 1933 and may not be offered or sold in the United States
>absent registration or an applicable exemption from registration
>requirements.
>
>MAXXAM (ASE:MXM) operates primarily in three areas: aluminum, forest
>products, and real estate.
>
>Contact: MAXXAM Inc., Houston Robert W. Irelan, 713/267-3722
>
>Mark Bult
>Bay Area Action's Headwaters Forest Project
>http://www.HeadwatersForest.org
>
>
>
>
>
David M. Walsh
P.O. Box 903
Redway, CA 95560
Office and Fax(707) 923-3015
Home (707) 986-1644

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