DBRS Comments on Weyerhaeuser’s Cash Tender Offer for Debt

DBRS notes that Weyerhaeuser Company (the Company) today announced that it is offering to purchase for cash up to $500 million principal amount of its outstanding 6.750% notes due March 15, 2012, at a price ranging from $1,030 to $1,062.50. The offer will expire at midnight on December 9, 2009.

DBRS believes the transaction does not have a material impact on the Company’s financial profile and does not warrant any rating action. The Company’s Issuer Rating is BBB (high) and its Commercial Paper is rated R-2 (high), both with Negative trends. At the end of September 2009, the Company had cash on hand totaling $1,624 million and can more than fund the tender offer internally. On a pro forma basis, the Company’s net debt position will be marginally higher due to the premium paid to redeem the debt.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating the Forest Products Industry and DBRS Rating Methodology for Leveraged Finance, which can be found on our website under Methodologies.

This is a Corporate (Natural Resources) rating.