RYAM Raises $700 million of Debt to Refinance its Capital Structure
Rayonier Advanced Materials (NYSE: RYAM) has secured a $700 million Term Loan from funds managed by Oaktree Capital Management, Silver Point Capital, and Blue Torch Capital. The financing will be used to refinance existing debt obligations, including 2026 senior secured notes and 2027 secured term loan. The new Term Loan features a three-month Term SOFR plus 7% interest rate, adjustable based on leverage ratios, with a five-year maturity. The company must maintain specific consolidated net secured debt to covenant EBITDA ratios through 2027. The loan includes prepayment options with varying premiums over different periods.
Rayonier Advanced Materials (NYSE: RYAM) ha ottenuto un prestito a termine da 700 milioni di dollari da fondi gestiti da Oaktree Capital Management, Silver Point Capital e Blue Torch Capital. Il finanziamento sarà utilizzato per rifinanziare le obbligazioni debitorie esistenti, comprese le note garantite senior del 2026 e il prestito a termine garantito del 2027. Il nuovo prestito a termine presenta un tasso d'interesse composto da tre mesi di Term SOFR più il 7%, regolabile in base ai rapporti di leva, con una scadenza di cinque anni. L'azienda deve mantenere specifici rapporti tra il debito netto garantito consolidato e l'EBITDA convenuto fino al 2027. Il prestito include opzioni di rimborso anticipato con premi variabili a seconda dei periodi.
Rayonier Advanced Materials (NYSE: RYAM) ha asegurado un préstamo a plazo de 700 millones de dólares de fondos administrados por Oaktree Capital Management, Silver Point Capital y Blue Torch Capital. La financiación se utilizará para refinanciar las obligaciones de deuda existentes, incluidas las notas garantizadas senior de 2026 y el préstamo a plazo garantizado de 2027. El nuevo préstamo a plazo presenta una tasa de interés de tres meses de Term SOFR más el 7%, ajustable según los ratios de apalancamiento, con un vencimiento de cinco años. La empresa debe mantener ratios específicos de deuda neta garantizada consolidada a EBITDA convenido hasta 2027. El préstamo incluye opciones de prepago con diferentes primas según los períodos.
레이오니어 어드밴스드 머티리얼즈 (NYSE: RYAM)는 Oaktree Capital Management, Silver Point Capital 및 Blue Torch Capital이 관리하는 자금으로부터 7억 달러 규모의 기간 대출을 확보했습니다. 이 자금은 2026년 만기 선순위 담보 노트 및 2027년 만기 담보 기간 대출을 포함하여 기존 부채 의무를 재융자하는 데 사용될 것입니다. 새로운 기간 대출은 3개월 Term SOFR 플러스 7%의 이자율을 특징으로 하며, 레버리지 비율에 따라 조정 가능하고, 5년 만기로 설정됩니다. 회사는 2027년까지 특정 통합 순담보 부채와 계약 EBITDA 비율을 유지해야 합니다. 이 대출에는 서로 다른 기간에 따라 다양한 프리미엄이 적용되는 선지급 옵션이 포함되어 있습니다.
Rayonier Advanced Materials (NYSE: RYAM) a obtenu un prêt à terme de 700 millions de dollars auprès de fonds gérés par Oaktree Capital Management, Silver Point Capital et Blue Torch Capital. Ce financement sera utilisé pour refinancer les obligations de dette existantes, y compris les obligations sécurisées senior de 2026 et le prêt à terme sécurisé de 2027. Le nouveau prêt à terme présente un taux d'intérêt de trois mois de Term SOFR plus 7%, ajustable en fonction des ratios d'endettement, avec une maturité de cinq ans. L'entreprise doit maintenir des ratios spécifiques de dette nette sécurisée consolidée par rapport à l'EBITDA convenu jusqu'en 2027. Le prêt comprend des options de remboursement anticipé avec des primes variables selon les périodes.
Rayonier Advanced Materials (NYSE: RYAM) hat einen Terminkredit in Höhe von 700 Millionen US-Dollar von von Oaktree Capital Management, Silver Point Capital und Blue Torch Capital verwalteten Fonds gesichert. Die Finanzierung wird verwendet, um bestehende Schuldenverpflichtungen, einschließlich der gesicherten Schuldverschreibungen 2026 und des gesicherten Terminkredits 2027, zu refinanzieren. Der neue Terminkredit bietet einen Zinssatz von drei Monaten Term SOFR plus 7 %, der basierend auf den Verschuldungsgraden anpassbar ist, mit einer Laufzeit von fünf Jahren. Das Unternehmen muss bis 2027 spezifische Verhältnisse von konsolidierter netto gesicherter Verschuldung zu vertraglichem EBITDA aufrechterhalten. Der Kredit umfasst Optionen zur vorzeitigen Rückzahlung mit unterschiedlichen Prämien für verschiedene Zeiträume.
- Secured $700 million in new financing to restructure existing debt
- Interest rate can decrease by 0.5% when net secured leverage falls below 2.50x EBITDA
- Flexible prepayment options after 36 months at par
- Maintains financial flexibility for strategic investments
- High initial interest rate of SOFR plus 7%
- Strict debt covenant requirements through 2027
- Substantial prepayment penalties in first 36 months
- Requires maintaining leverage ratios of 5.00x through 2025, decreasing to 4.50x by 2027
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- Flexible prepayment options after 36 months at par, with modest call premiums before then
- Interest rate reduction potential when leverage drops below 2.50x EBITDA
- Covenant requirements starting at 5.00x through 2025, stepping down gradually
The structure provides breathing room for deleveraging while maintaining operational flexibility. However, the high initial interest rate could pressure near-term cash flows. The company's ability to improve EBITDA and reduce leverage will be important for realizing the benefits of this refinancing.
“We are pleased to have completed this important financing step for RYAM, which strengthens our capital structure and preserves the flexibility to execute our long-term business strategy,” said De Lyle Bloomquist, RYAM’s President and Chief Executive Officer. “Importantly, this new debt structure allows us to meet our obligations while also providing the flexibility to deleverage and to opportunistically make strategic investments that will fuel the growth of our biomaterials strategy.”
The Term Loan will initially accrue interest at an annual rate equal to three-month Term SOFR plus an initial spread of 7 percent, subject to adjustment based on the Company’s consolidated net secured debt to covenant EBITDA ratio. The Term Loan will mature in five years. The Company may, with modest call premiums, voluntarily prepay the Term Loan, subject to an additional make-whole premium for the first eighteen months, followed by a 2 percent premium during the next six months and a 1 percent premium for the twelve months thereafter. The Company may prepay the Term Loan at par after 36 months. The Company will be required to maintain an initial consolidated net secured debt to covenant EBITDA ratio of no greater than 5.00 times through fiscal 2025, 4.75 times during fiscal 2026 and 4.50 times during fiscal 2027 and thereafter.
“The Term Loan allows RYAM to benefit from declining interest rates, as expected in the near-term. The interest rate will further decline as our net secured leverage moves below 2.50 times covenant EBITDA. The spread will decrease by half of a percent once this condition is met. With modest call premiums, we will also have the flexibility to repay the debt in the medium term as financial metrics continue to improve and markets recognize the value of RYAM. This successful financing transaction reinforces our commitment to creating long-term value for our shareholders and further establishes RYAM as a leader in the sustainable materials sector,” concluded Mr. Bloomquist.
Houlihan Lokey served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to RYAM on this transaction. Sullivan & Cromwell LLP acted as legal counsel to the lead lender. 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. RYAM’s specialized assets, capable of creating the world’s leading high purity cellulose products, are also used to produce biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the
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
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Ryan Houck
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Source: Rayonier Advanced Materials Inc.
FAQ
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