Rayonier withdraws $325 million secured notes offering, cites unattractive terms and conditions

By Paul A. Harris

Portland, Ore., Jan. 20 – Rayonier Advanced Materials Inc. withdrew its $325 million offering of five-year senior secured notes (B3/B) asserting that current terms and conditions were not sufficiently attractive for the company, according to a Friday press release.

The deal, which kicked off with early yield guidance in the high-9% to 10% area, ran a Tuesday through Thursday roadshow during which books were slow to build, market sources said.

As of midday Thursday, the $325 million offering was heard to be playing to $135 million of orders, according to a sellside source.

The notes were to be issued via Rayonier A.M. Products Inc.

The Jacksonville, Fla.-based producer of specialty cellulose materials came to the market to raise cash to help pay off its 5½% senior notes due June 2024.

The company stated that it will continue to monitor capital markets and is prepared to opportunistically refinance those notes, according to the press release.

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, the release added.

BofA Securities Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and Regions Securities LLC were bookrunners for the withdrawn notes offering.

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