WEYERHAEUSER CO Debt Disclosure
NOTE 11: LONG-TERM DEBT, NET
This note provides details about:
|
debt issued and extinguished and |
|
long-term debt and related maturities. |
Our long-term debt includes notes, debentures and other borrowings.
DEBT ISSUED AND EXTINGUISHED
Over the course of 2023, we refinanced approximately $1 billion of debt.
In December 2023, we entered into a $250 million senior unsecured term loan that will mature in December 2028. Net proceeds after fees were $249 million. Borrowings will bear interest at a floating rate based on either the adjusted term SOFR plus a spread or a mutually agreed upon base rate plus a spread. The facility also provides flexibility to enter into a mutually agreed fixed rate.
In December 2023, we repaid our $860 million 5.207 percent private note at maturity, funded by cash on hand, including the proceeds from our short-term investments which matured in fourth quarter 2023.
In July 2023, we repaid $118 million of our 7.125 percent notes at maturity.
In May 2023, we completed an offering of debt securities by issuing $750 million of 4.750 percent notes due in May 2026. The net proceeds after deducting the discount, underwriting fees and issuance costs were $743 million.
In March 2022, we completed a series of transactions that lowered our weighted average interest rate and extended our weighted average maturity by issuing $900 million in notes and using the net proceeds plus cash on hand to close cash tender offers for $931 million of principal in higher interest rate notes. We issued $450 million of 3.375 percent notes due in March 2033 and $450 million of 4.00 percent notes due in March 2052. The net proceeds after deducting the discount, underwriting fees and issuance costs were $444 million and $437 million, respectively. The net proceeds were used to retire $592 million of our 7.375 percent notes due in March 2032, $161 million of our 8.50 percent notes due in January 2025, $73 million of our 7.125 percent notes due in July 2023, $65 million of our 7.95 percent notes due in March 2025 and $40 million of our 7.85 percent notes due in July 2026. We paid holders an aggregate $1.2 billion in cash reflecting principal, premium to par and tender premium. A net pretax charge of $276 million ($207 million after-tax) was included in our Consolidated Statement of Operations in first quarter 2022 for premiums to retire $931 million of principal plus unamortized debt issuance costs and unamortized debt discounts in connection with the early debt retirement.
In October 2021, we repaid our $150 million 9.00 percent notes at maturity.
In May 2021, we repaid our $225 million variable-rate term loan that was scheduled to mature in July 2026.
LONG-TERM DEBT AND RELATED MATURITIES
The following table lists our long-term debt by types and interest rates at the end of our last two years and includes the current portion.
Long-Term Debt by Types and Interest Rates (Includes Current Portion)
DOLLAR AMOUNTS IN MILLIONS |
|
|
|
|
|
|
||
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
||
7.125% debentures due 2023 |
|
$ |
— |
|
|
$ |
118 |
|
5.207% installment note due 2023 |
|
|
— |
|
|
|
860 |
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8.50% debentures due 2025 |
|
|
139 |
|
|
|
139 |
|
7.95% debentures due 2025 |
|
|
71 |
|
|
|
71 |
|
7.70% debentures due 2026 |
|
|
150 |
|
|
|
150 |
|
7.35% debentures due 2026 |
|
|
62 |
|
|
|
62 |
|
7.85% debentures due 2026 |
|
|
60 |
|
|
|
60 |
|
4.75% notes due 2026 |
|
|
750 |
|
|
|
— |
|
6.95% debentures due 2027 |
|
|
300 |
|
|
|
300 |
|
Variable-rate term loan matures 2028 |
|
|
250 |
|
|
|
— |
|
4.00% notes due 2029 |
|
|
750 |
|
|
|
750 |
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4.00% notes due 2030 |
|
|
750 |
|
|
|
750 |
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7.375% debentures due 2032 |
|
|
657 |
|
|
|
657 |
|
6.875% debentures due 2033 |
|
|
275 |
|
|
|
275 |
|
3.375% debentures due 2033 |
|
|
450 |
|
|
|
450 |
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4.00% debentures due 2052 |
|
|
450 |
|
|
|
450 |
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Other |
|
|
1 |
|
|
|
1 |
|
Total principal long-term debt |
|
|
5,115 |
|
|
|
5,093 |
|
Add: business combination fair value adjustment |
|
|
— |
|
|
|
4 |
|
Less: unamortized discounts |
|
|
(37 |
) |
|
|
(37 |
) |
Less: unamortized debt expense |
|
|
(9 |
) |
|
|
(7 |
) |
Total |
|
$ |
5,069 |
|
|
$ |
5,053 |
|
Principal due within one year |
|
$ |
— |
|
|
$ |
978 |
|
Amounts of Long-Term Debt Due Annually for the Next Five Years and Thereafter
DOLLAR AMOUNTS IN MILLIONS (1) |
|
|
|
|
2024 |
|
$ |
— |
|
2025 |
|
$ |
210 |
|
2026 |
|
$ |
1,022 |
|
2027 |
|
$ |
300 |
|
2028 |
|
$ |
250 |
|
Thereafter |
|
$ |
3,333 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 16, 2024 | Showing above |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 17, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.