Rayonier closes on $350 million term loan, $200 million revolver

By Wendy Van Sickle

Columbus, Ohio, Aug. 5 – Rayonier Inc. entered into a nine-year $350 million term loan and a five-year $200 million revolving credit facility on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.

The company also obtained an interest rate swap to fix the cost of the term loan facility. The all-in fixed-rate cost of the term loan facility is expected to be about 3.3%.

Interest on the revolver is at Libor plus 125 basis points. It ranges based on leverage from Libor plus 112.5 bps to 175 bps. It has an unused fee which is currently 17.5 bps and can range from 15 bps to 27.5 bps.

If any portion of the commitments under the term loan facility are outstanding on Nov. 5, it will also be subject to the unused commitment fee.

The revolver matures Aug. 5, 2020 and includes a $50 million swing line subfacility and a $50 million letter of credit subfacility. The term loan matures Aug. 5, 2024.

CoBank, ACB is the administrative agent, lead arranged and bookrunner. JPMorgan Chase Bank, NA and Farm Credit of Florida, ACA, are the co-syndication agents. Credit Suisse AG and Suntrust Bank are the co-documentation agents.

At closing, the company borrowed $64 million under of the revolver and used a portion of it to repay amounts outstanding under two other credit agreements, one dated April 21, 2011 and the other Dec. 17, 2012.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.