Weyerhaeuser Company -- Moody's says Weyerhaeuser divesting WRECO via split-off is credit positive

Toronto, May 13, 2014 -- Moody's: Weyerhaeuser Company's (Weyerhaeuser, Baa3 stable) announcement that it will divest its homebuilding subsidiary, Weyerhaeuser Real Estate Company (WRECO), through a split-off is credit positive. The split-off is a tax-efficient way for Weyerhaeuser to redeem its shares and will reduce the amount of cash leaving the company to pay its ongoing equity dividend. The split-off is in connection with the previously announced transaction where WREOC will merge with a wholly owned subsidiary of TRI Pointe Homes, Inc. (TRH, unrated), with WRECO becoming a wholly owned subsidiary of TRH.

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