By Paul A. Harris
Portland, Ore., May 8 - Rayonier A.M. Products Inc. priced an upsized $550 million issue of 10-year senior notes (Ba3/BB+/) at par to yield 5½% on Thursday, according to a syndicate source.
The deal was upsized from $500 million.
The yield printed on top of yield talk.
Initial yield guidance was in the high 5% context, sources say.
BofA Merrill Lynch was the left bookrunner. Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used to fund the spinoff of Rayonier Advanced Materials Inc., a Jacksonville, Fla.-based manufacturer of specialty wood pulp, from Rayonier, Inc.
| Issuer: | Rayonier A.M. Products Inc.
|
| Amount: | $550 million, increased from $500 million
|
| Maturity: | June 1, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Co-managers: | SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 290 bps
|
| First call: | June 1, 2019 at 102.75
|
| Trade date: | May 8
|
| Settlement date: | May 22
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Roadshow
|
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