Item 8.01 Other Events

As disclosed in our Quarterly Report on Form 10-Q for the period ended April 4, 2009, on April 23, 2009, the credit ratings of SunTrust Bank, one of the banks issuing irrevocable letters of credit securing the notes we received in connection with the sale of our strategic timberland in 2007, were lowered to a level that required the letters of credit issued by SunTrust to be replaced by letters of credit issued by another qualifying financial institution.

On May 21, 2009, Coöperative Centrale Raiffeisen-Boerenleenbank B.A., commonly known as Rabobank, at the request of the timberland buyer, issued substitute letters of credit totaling approximately $500 million in complete replacement of SunTrust as a qualified letter of credit issuer in the transaction. The applicable credit ratings of Rabobank are currently AAA by Standard & Poor's and Aaa by Moody's. In connection with the substitution, we paid approximately $3 million in fees to Rabobank.

The Purchase Notes, which are secured by the Letters of Credit, are included in our balance sheet under the caption "financial assets of special purpose entities." The obligations under the Loan Agreements are included in our balance sheet under the caption "nonrecourse financial liabilities of special purpose entities."

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