Rayonier Advanced Materials amends loan, revising leverage covenant

By Sara Rosenberg

New York, Jan. 2 – Rayonier Advanced Materials Inc. has reached an agreement with lenders under its term loan to obtain financial covenant relief for the period beginning with the fourth quarter of the company’s 2023 fiscal year through the end of its 2024 fiscal year, according to a news release.

Specifically, the amendment revises the maximum consolidated secured net leverage ratio to 5.25x for the fourth fiscal quarter of 2023 through the second fiscal quarter of 2024, 5x for the third fiscal quarter of 2024, 4.75x for the fourth fiscal quarter of 2024 and 4.5x for each fiscal quarter thereafter.

“Working collaboratively with our lenders at Oaktree, we reached an amendment that gives us access to liquidity and provides operational flexibility to execute our strategy,” said De Lyle Bloomquist, president and chief executive officer, in the release.

“While we remain confident that we could have managed within the covenant, the added flexibility should provide comfort to key stakeholders, including debt and equity investors, as we execute on our strategy to improve the balance sheet and grow our biomaterials business,” Bloomquist added.

Rayonier Advanced Materials is a Jacksonville, Fla.-based provider of cellulose-based technologies.

© 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.