Sylvamo to Pay Down Debt With $60 Million Released From Escrow
Sylvamo (NYSE: SLVM) has regained access to $60 million previously held in escrow for disputed goodwill tax deductions in Brazil, following a favorable court ruling. The company plans to use these funds for debt reduction. The ruling, which covers two-thirds of the disputed amount, remains subject to appeal. Sylvamo aims to pay down $120 million in debt during Q4, which would represent a 47% reduction in gross debt since its 2021 spinoff. The escrow elimination removes previous restrictions that the company to $90 million in annual cash returns to shareholders.
Sylvamo (NYSE: SLVM) ha riacquistato accesso a 60 milioni di dollari precedentemente depositati in un conto di deposito per controversie relative a deduzioni fiscali per avviamento in Brasile, a seguito di una sentenza favorevole del tribunale. L'azienda prevede di utilizzare questi fondi per ridurre il debito. La sentenza, che copre due terzi dell'importo contestato, è soggetta ad appello. Sylvamo intende ridurre il debito di 120 milioni di dollari durante il quarto trimestre, il che rappresenterebbe una riduzione del 47% del debito lordo rispetto alla sua scissione nel 2021. L'eliminazione del deposito rimuove le precedenti restrizioni che limitavano l'azienda a 90 milioni di dollari in ritorni annuali in contante per gli azionisti.
Sylvamo (NYSE: SLVM) ha recuperado el acceso a 60 millones de dólares que anteriormente estaban en un fideicomiso debido a deducciones fiscales de buena voluntad en disputa en Brasil, tras un fallo judicial favorable. La empresa planea utilizar estos fondos para la reducción de deudas. El fallo, que cubre dos tercios del monto en disputa, está sujeto a apelación. Sylvamo tiene como objetivo reducir 120 millones de dólares en deudas durante el cuarto trimestre, lo que representaría una reducción del 47% en la deuda bruta desde su escisión en 2021. La eliminación del fideicomiso quita las restricciones anteriores que limitaban a la empresa a 90 millones de dólares en retornos anuales de efectivo para los accionistas.
실바모 (NYSE: SLVM)는 브라질에서 논란이 있는 영업권 세금 공제와 관련하여 에스크로에 보관되어 있던 6천만 달러에 대한 접근을 재확보했습니다. 이는 유리한 법원 판결에 따른 것입니다. 회사는 이 자금을 부채 감소에 사용할 계획입니다. 해당 판결은 논란이 되는 금액의 3분의 2를 포함하고 있으며, 항소될 수 있습니다. 실바모는 4분기 동안 1억 2천만 달러의 부채를 상환할 계획이며, 이는 2021년 분할 이후 총 부채에서 47% 감소한 수치입니다. 에스크로 금지 해제는 연간 9천만 달러의 주주 현금 반환에 대한 이전 제한을 제거합니다.
Sylvamo (NYSE: SLVM) a retrouvé l'accès à 60 millions de dollars auparavant détenus en séquestre pour des déductions fiscales de goodwill contestées au Brésil, suite à une décision judiciaire favorable. La société prévoit d'utiliser ces fonds pour réduire sa dette. Le jugement, qui couvre les deux tiers du montant contesté, reste susceptible d'appel. Sylvamo vise à rembourser 120 millions de dollars de dette au cours du quatrième trimestre, ce qui représenterait une réduction de 47 % de la dette brute depuis sa scission en 2021. La suppression de l'entiercement lève les restrictions antérieures qui limitaient la société à 90 millions de dollars de retours en espèces annuels pour les actionnaires.
Sylvamo (NYSE: SLVM) hat den Zugang zu 60 Millionen Dollar wiedererlangt, die zuvor aufgrund von strittigen Goodwill-Steuerabzügen in Brasilien in einem Treuhandkonto gehalten wurden, nach einem favorablem Gerichtsurteil. Das Unternehmen plant, diese Mittel zur Schuldentilgung zu verwenden. Das Urteil, das zwei Drittel des strittigen Betrags abdeckt, ist noch anfechtbar. Sylvamo beabsichtigt, im vierten Quartal 120 Millionen Dollar an Schulden abzubauen, was eine Reduzierung der Bruttoschuld um 47 % seit seiner Abspaltung im Jahr 2021 darstellen würde. Die Aufhebung des Treuhands beseitigt frühere Beschränkungen, die das Unternehmen auf jährlich 90 Millionen Dollar an Cash-Renditen an die Aktionäre beschränkten.
- Access to $60 million previously held in escrow
- Favorable court ruling on Brazilian tax dispute
- Planned debt reduction of $120 million in Q4
- 47% reduction in gross debt since 2021 spinoff
- Removal of $90 million annual limit on shareholder returns
- Court ruling remains subject to appeal
- Ongoing tax dispute in Brazil not fully resolved
Insights
This debt reduction initiative significantly strengthens Sylvamo's financial position. The
The company’s lenders agreed to eliminate the escrow after a Brazilian court ruled in its favor. The ruling—covering two-thirds of the amount disputed in several proceedings—is subject to appeal.
Due to the potential liability of the goodwill tax deductions, lenders limited Sylvamo to
“We intend to use the funds from the escrow elimination to help pay down debt. Additionally, our strong cash flow will allow us to pay down a total of
More information about the ruling is available in the third quarter 2024 earnings presentation at investors.sylvamo.com.
About Sylvamo
Sylvamo (NYSE: SLVM) is the world’s paper company with mills in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241203524500/en/
Investors: Hans Bjorkman, 901-519-8030, hans.bjorkman@sylvamo.com
Media: Adam Ghassemi, 901-519-8115, adam.ghassemi@sylvamo.com
Source: Sylvamo
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