Rayonier to use note proceeds to repay credit facility due 2016

By Tali David

Minneapolis, Feb. 29 - Rayonier Inc. plans to use about $150 million of proceeds from its senior note offering to repay borrowings outstanding under its revolving credit facility due 2016 and the remainder for general corporate purposes, according to a 424B2 filed with the Securities and Exchange Commission

As of Feb. 28, the amount of borrowings outstanding under the facility was $150 million.

Rayonier said that amounts repaid under its revolving credit facility may be reborrowed, subject to the terms of the facility.

The interest rate under the revolving credit agreement is Libor plus 105 basis points plus a facility fee of 20 bps. The weighted average interest rate on borrowings outstanding under the revolving credit agreement during 2011 was about 1.48%, according to the filing.

Rayonier is a Jacksonville, Fla.-based forest products company.

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