RYAM Decides Not to Pursue at This Time Its Opportunistic Private Offering of $325 Million of Senior Secured Notes

Rhea-AI Summary

Rayonier Advanced Materials Inc. (NYSE: RYAM) announced that its subsidiary, Rayonier A.M. Products Inc., will not proceed with a private offering of $325 million senior secured notes due 2028 due to unattractive terms. Consequently, RYAM will not redeem its senior unsecured notes due 2024 at this time. The company plans to monitor capital markets for refinancing opportunities for its 5.5% unsecured senior notes maturing in June 2024 and is confident in obtaining favorable terms. RYAM is a leader in cellulose-based technologies with $1.7 billion in estimated revenue for 2022.

Positive

• RYAM is confident in securing favorable refinancing terms for its senior unsecured notes maturing in June 2024.
• The company aims to improve its debt to EBITDA ratio, signaling a focus on financial strength.

Negative

• The decision to not pursue the $325 million offering indicates current market conditions are unfavorable for RYAM.
• Not redeeming the 2024 Notes could imply potential liquidity concerns.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Rayonier Advanced Materials Inc. (NYSE: RYAM) (“RYAM” or “the Company”) today announced that its wholly owned subsidiary, Rayonier A.M. Products Inc., has decided not to pursue at this time its opportunistic private offering of $325 million aggregate principal amount of senior secured notes due 2028 (the “Notes”) as current terms and conditions were not sufficiently attractive for the Company. As a result, the Company does not intend to redeem its senior unsecured notes due 2024 (the “2024 Notes”) at this time.

RYAM will continue to monitor capital markets and is prepared to opportunistically refinance its 5.5% unsecured senior notes, which mature in June 2024. The Company remains confident that it will obtain an acceptable refinancing at the appropriate time, as it continues to improve its debt to EBITDA ratio.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release does not constitute an offer to purchase, the solicitation of an offer to purchase or a notice of redemption for the 2024 Notes. Any such notice will be made separately pursuant to and in accordance with the terms of the indenture governing the 2024 Notes.

About RYAM

RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in 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 just over 2,500 people and generated an estimated $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 RYAMs’ future 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,” “forecast,” “anticipate,” “guidance,” and other similar language. However, the absence of these or similar words or expressions does not mean 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 these expectations will be attained and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this release. The financial results presented in this press release are preliminary, estimated and unaudited, and reflect management’s estimates based solely upon information available to management as of the date of this press release and are subject to change. The Company has not completed preparation of its financial statements for the fourth quarter or full year ended December 31,2022 or filed its Form 10-K for the year ended December 31, 2022. During the course of the preparation of such financial statements and its Form 10-K for the year ended December 31, 2022, the Company’s independent registered public accountants may identify items that could cause final reported results to be materially different from the preliminary financial estimates presented herein. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Annual Report on Form 10-K, and should not be considered a substitute for the financial information to be filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 once it becomes available.

These forward-looking statements are also affected by the risk factors and forward-looking statements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 26, 2022, June 25, 2022 and September 24, 2022, and those set forth from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, which are available at www.RYAM.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230119005959/en/

Media

Ryan Houck

904-357-9134

Investors

Mickey Walsh

904-357-9162

Source: Rayonier Advanced Materials Inc.

FAQ

Why did RYAM cancel its $325 million senior secured notes offering?

RYAM decided not to proceed with the offering as the terms and conditions were not sufficiently attractive.

What is the maturity date for RYAM's unsecured senior notes?

The unsecured senior notes mature in June 2024.

How much revenue did RYAM generate in 2022?

RYAM generated an estimated $1.7 billion in revenue in 2022.

What are the implications of RYAM not redeeming its 2024 Notes?

Not redeeming the 2024 Notes might indicate liquidity concerns for the company.

What is RYAM's strategy for its upcoming financial obligations?

RYAM plans to monitor capital markets and refinance its unsecured senior notes as conditions improve.