Rayonier amends facility, obtains $200 million incremental term loan

By Rebecca Melvin

Concord, N.H., June 7 – Rayonier Inc. and several Rayonier units have entered into an amendment with lenders under an existing credit agreement and obtained a new $200 million senior incremental term loan, according to an 8-K filed with the Securities and Exchange Commission.

The agreement was entered into on June 1.

The other borrowers are Rayonier TRS Holdings Inc., Rayonier Operating Co. LLC and Rayonier LP.

CoBank AB is administrative agent of the amendment agreement.

The amendment extends the maturity of the revolving credit facility under the credit agreement to June 1, 2026 from April 1, 2025. It also modifies the pricing grid under the credit agreement to reduce the margin by 25 basis points for the revolver and the 2016 incremental term loan facility.

The grid for the revolver is Libor plus 112.5 basis points to 175 bps, with the unused commitment fee ranging from 15 bps to 27.5 bps.

Term loan advances range from Libor plus 150 bps to 210 bps.

The 2016 incremental term loan now ranges from Libor plus 152.5 bps to 215 bps.

The new incremental term loan facility provides an advance of the commitment amount to Rayonier LP on or before June 1, 2022, at RLP’s election. As of June 4, no advance has been made. Rayonier LP expects to use any future advance under the new loan to refinance its 3.75% senior notes due April 2022 at or prior to maturity, repay other debt or for general corporate purposes.

The periodic interest rate on the new loan currently is Libor plus 155 bps, based on the leverage ratio.

The 2021 incremental term loan facility allows for the borrowers to receive annual patronage payments, which are profit distributions made by a cooperative to its member-users based on the quantity or value of business done with the member-user.

Any advance must be repaid on June 1, 2029 and may be prepaid without penalty at any time in whole or part. It is subject to the covenants and events of default contained in the 2015 credit agreement. It also contains customary events of default.

The 2021 incremental term loan lenders are Farm Credit of Florida, ACA, Farm Credit Services of America, PCA and American AgCredit, PCA.

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

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