Great Northern in $50 million land swap

Pulp & Paper, Oct 2002

UNCOATED GROUNDWOOD

Great Northern Paper Inc. andThe Nature Conservancy recently reached a deal that helps the financially struggling paper company by reducing its debt and also preserves forestland around Mount Katahdin near Millinocket, Maine. The nonprofit conservation group agreed to take over a $50-million mortgage held by Great Northern with John Hancock Financial Services and would pay off $14 million of the debt. The Nature Conservancy would then refinance the remaining $36 million at about half the interest rate being paid by Great Northern that would then repay the $36 million in monthly payments to the Nature Conservancy. In return, Great Northern will place a conservation easement on 200,000 acres of forestland around Mount Katahdin, which will guarantee public access, traditional recreational uses, sustainable forestry, and no future development. In addition, the company will transfer 41,000 acres in the Debsconeag Lakes wilderness area to The Nature Conservancy.