Rayonier picks up 10-year $300 million incremental term loan

By Wendy Van Sickle

Columbus, Ohio, May 2 – Rayonier Inc., Rayonier TRS Holdings Inc. and Rayonier Operating Co. LLC entered into an amendment on Thursday to their Aug. 5, 2015 credit agreement providing a $300 million incremental term loan to Rayonier Operating, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement also governs an existing $200 million revolving credit facility and an existing $350 million term loan facility. CoBank, ACB is the administrative agent.

Interest on the new incremental term loan is initially Libor plus 190 basis points, and the margin can range from 177.5 bps to 215 bps, depending on the group’s consolidated leverage ratio.

All advances made under the incremental term loan facility must be paid on April 28, 2026, but loans may be prepaid without penalty, other than customary breakage costs, at any time.

Proceeds were used to fund a portion of Rayonier’s joint acquisition with Forest Investment Associates of all the outstanding common stock of Menasha Forest Products Corp., which closed on Friday. In the second quarter, Rayonier and Forest Investment are expected to distribute the timberlands owned by Menasha to various entities, ultimately resulting in Rayonier owning a portfolio of 61,000 acres of the Menasha timberlands for a final purchase price of $263 million.

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

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