Rayonier announces credit agreement amendment  

Image courtesy: Rayonier

Rayonier Advanced Materials Inc. has reached agreement with lenders under its Senior Secured Credit Agreement and entered into an amendment under which, among other changes, the lenders have agreed to relax the Total Net Senior First Lien Secured Leverage Ratio and Interest Coverage Ratio tests through 2021.


The Amendment also increases the interest rate margin on borrowings to be paid to lenders by a maximum of 1.25%, subject to operation of a pricing grid which provides for reduced interest rate margins with improved leverage ratios; provides additional collateral for the lenders; and requires the Company to maintain availability under its revolving credit facility in specified amounts that vary to reflect the seasonality of the business. Lenders were paid a customary fee as consideration for their consent to the Amendment.


Under the terms of the Amendment, the Company will also retain up to $50 million in net proceeds from the previously-announced sale of its Matane pulp mill, which remains on track to close in the fourth quarter, with the remainder of the net proceeds to be used to repay a portion of the Company’s secured debt.


Rayonier Advanced Materials is a global leader of cellulose-based technologies.

Source: Lesprom Network