Rayonier A.M. enters five-year $200 million asset-based revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 10 – Rayonier A.M. Products Inc., a wholly owned subsidiary of Rayonier Advanced Materials Inc., entered into a five-year senior secured asset-based revolving credit facility for up to $200 million on Thursday with Bank of America NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

There is a $100 million sublimit for letters of credit and a $50 million sublimit for swingline loans.

The credit facility will mature on the earliest of the fifth anniversary of the first date on which the commitments become available and 121 days prior to certain other debts.

The interest rate for borrowings is Libor plus a margin ranging from 225 basis points to 275 bps, depending on leverage ratio, with a 0.25% Libor floor. The undrawn commitment fee is 37.5 bps.

The credit agreement allows the company to increase availability or add term loans on a last-out basis up to a maximum of $50 million.

Proceeds may be used for working capital and general corporate purposes.

Rayonier is a Jacksonville, Fla.-based provider of cellulose materials for various applications.

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