RYAM Announces Amendment to Term Loan Credit Agreement
02 Janeiro 2024 - 6:30PM
Business Wire
Rayonier Advanced Materials Inc. (NYSE: RYAM) (the “Company”),
the global leader in High Purity Cellulose, today announced that it
has reached an agreement with lenders under its Term Loan Credit
Agreement to obtain financial covenant relief for the period
beginning with the fourth quarter of the Company’s 2023 fiscal year
through the end of its 2024 fiscal year.
The amendment amends that certain Term Loan Credit Agreement,
dated as of July 20, 2023 (the “Term Loan Credit Agreement”), to,
among other things, increase the maximum consolidated secured net
leverage ratio, as defined in the Term Loan Credit Agreement, that
RYAM must maintain through its 2024 fiscal year. Pursuant to the
amendment, RYAM is required to maintain a consolidated secured net
leverage ratio of 5.25 to 1.00 for the fourth fiscal quarter of
2023 through the second fiscal quarter of 2024, 5.00 to 1.00 for
the third fiscal quarter of 2024, 4.75 to 1.00 for the fourth
fiscal quarter of 2024 and 4.50 to 1.00 for each fiscal quarter
thereafter. RYAM agreed to pay the lenders under the Term Loan
Credit Agreement certain fees in connection with the amendment.
“Working collaboratively with our lenders at Oaktree, we reached
an amendment that gives us access to liquidity and provides
operational flexibility to execute our strategy,” said De Lyle
Bloomquist, President and Chief Executive Officer. “While we remain
confident that we could have managed within the covenant, the added
flexibility should provide comfort to key stakeholders, including
debt and equity investors, as we execute on our strategy to improve
the balance sheet and grow our biomaterials business.”
Wachtell, Lipton, Rosen & Katz served as legal counsel to
RYAM and Sullivan & Cromwell LLP served as legal counsel to
Oaktree in this transaction. Additional details of the transaction
will be issued in a Form 8-K filed with the SEC.
About RYAM
RYAM is a global leader of cellulose-based technologies,
including high purity cellulose specialties, a natural polymer
commonly used in the production of filters, food, pharmaceuticals,
and other industrial applications. The Company also manufactures
products for paper and packaging markets. With manufacturing
operations in the U.S., Canada, and France, RYAM employs
approximately 2,500 people and generated $1.7 billion of revenues
in 2022. More information is available at www.RYAM.com.
Forward-Looking Statements
Certain statements in this document regarding anticipated
financial, business, legal, or other outcomes, including business
and market conditions, outlook, and other similar statements
relating to Rayonier Advanced Materials’ or future or expected
events, developments, or financial or operational performance or
results, are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995 and other federal securities laws. These forward-looking
statements are identified by the use of words such as "may,"
"will," "should," "expect," "estimate," "believe," "intend,"
"anticipate," and other similar language. However, the absence of
these or similar words or expressions does not mean that a
statement is not forward-looking. While we believe these
forward-looking statements are reasonable when made,
forward-looking statements are not guarantees of future performance
or events, and undue reliance should not be placed on these
statements. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we
can give no assurance that these expectations will be attained. It
is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties.
Other important factors that could cause actual results or
events to differ materially from those expressed in forward-looking
statements that may have been made in this document are described
or will be described in our filings with the U.S. Securities and
Exchange Commission, including our Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes
no obligation to update these statements except as is required by
law.
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