Rayonier starts roadshow for $325 million five-year secured notes; initial talk high-9% to 10% area

By Paul A. Harris

Portland, Ore., Jan. 17 – Rayonier A.M. Products Inc. began a roadshow on Tuesday for a $325 million offering of senior secured notes due 2028, according to market sources.

Initial guidance has the notes coming to yield in the high-9% to 10% area, according to a sellside source.

The roadshow is set to run through Thursday.

BofA Securities Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and Regions Securities LLC are the joint bookrunners.

The five-year notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a 40% equity clawback at par plus the full coupon during the non-call period and a 101% poison put.

The Jacksonville, Fla.-based producer of specialty cellulose materials plans to use the proceeds plus cash on hand to pay off its 5½% senior notes due 2024.

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