Moody's rates Rayonier notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Rayonier LP's planned $400 million of senior unsecured notes. Rayonier Inc. guarantees Rayonier LP's debt. Rayonier's ratings are unchanged.

Rayonier intends to use the proceeds to repay its $250 million incremental term loan facility and general corporate purposes, which may include the repayment of the $325 million of 3.75% senior unsecured notes due April 2022 at or before maturity.

"The notes issuance is leverage neutral and Rayonier's existing ratings remain unchanged, reflecting our expectation that company will maintain strong asset coverage and that leverage will decline to below 4.5x over the next 12 to 18 months" said Ed Sustar, a senior vice president with Moody's, in a press release.

The outlook remains stable.

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