Rayonier Advanced Materials offers $125 million mandatory convertible preferred stock

By Stephanie N. Rotondo

Seattle, Aug. 3 – Rayonier Advanced Materials Inc. plans to price a $125 million offering of series A mandatory convertible preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Wednesday.

There is a $1,875,000 over-allotment option.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. DNB Markets, PNC Capital Markets LLC, TD Securities and U.S. Bancorp Investments Inc. are the co-managers.

Dividends will be payable on the 15th day of February, May, August and November, beginning Nov. 15.

The preferreds automatically convert into common stock on the third business day immediately following the last trading day of the final averaging period, which ends Aug. 15, 2019.

At any time prior to that date, holders can convert their preferreds into common stock.

The new securities will be listed on the New York Stock Exchange under the ticker symbol “RYAMPA.”

The Jacksonville, Fla.-based cellulose producer plans to use proceeds for general corporate purposes.

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