We saw last weeks news that St. Joe ($JOE) received $55M to rent land the RMS for timber use. Tonight we see they have amended their credit agreement to allow them to do an additional 60k acres.
From the 8K Filed Tonight
Amendment of Credit Agreement
St. Joe has a credit agreement with Branch Banking & Trust Company and Deutsche Bank for a $125 million revolving credit facility (the “Credit Agreement”). On March 31, 2011, St. Joe entered into a Seventh Amendment to the Credit Agreement (the “Seventh Amendment”) in order to waive compliance with certain restrictive covenants to permit timber deed transactions, like the transaction described above, on up to 100,000 acres of St. Joe property. The Seventh Amendment, among other things, also removed development properties owned by St. Joe from the springing lien provisions of the Credit Agreement. It also provides that if St. Joe fails to maintain cash liquidity of at least $30 million, or if St. Joe makes a draw under the Credit Agreement, St. Joe would be required to provide additional property legal descriptions for use by the lenders in connection with the springing lien provisions.
If we assume roughly a same per acre rental agreement that means St. Joe could net ~$70M – $80M from timbering the additional acreage.