Resolute Forest extends ABL revolver, adds ESG component

By Wendy Van Sickle

Columbus, Ohio, Dec. 15 – Resolute Forest Products Inc. reset the five-year maturity of its senior secured asset-based revolving credit facility with a total lender commitment of up to $450 million, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves, according to a news release.

The facility also includes an environmental, social and governance component with targets to be agreed upon with the bank syndicate, which will impact pricing upon activation.

The ABL facility is undrawn, aside from $73 million of letters of credit outstanding.

A number of modifications were made to the credit facility, including a Libor transition.

The facility includes a $250 million tranche available to Resolute's U.S. borrowers and its Canadian borrowers, as well as a $200 million tranche available only to its U.S. borrowers, in each case subject to the borrowing base availability of those borrowers.

There is a $60 million swingline sub-facility and a $200 million letter-of-credit sub-facility. The credit agreement also provides for an uncommitted ability to increase the revolver by up to $500 million, subject to terms and conditions.

The company's obligations under the facility are guaranteed by some material subsidiaries, and they are secured by first-priority liens on accounts receivable, inventory and related assets.

Bank of America is administrative agent and collateral agent. Bank of America, Wells Fargo and Bank of Montreal are joint lead arrangers and joint bookrunners; Canadian Imperial Bank of Commerce and TD Bank are co-documentation agents.

Resolute is a Montreal-based pulp, paper, tissue and wood products manufacturer.

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