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Rayonier extends commitment letter upon amending Tembec purchase price
By Marisa Wong
Morgantown, W.Va., July 24 – Rayonier Advanced Materials Inc. amended its amended and restated commitment letter on Sunday to permit commitments to remain outstanding after it updated its agreement to acquire Tembec Inc., according to an 8-K filing with the Securities and Exchange Commission.
The commitment letter, entered into on May 24 and restated on June 12, provides for up to $450 million of senior secured term loans as additional tranches under the company’s existing senior secured credit facility. Loan proceeds may be used to fund all or a portion of the cash consideration for the acquisition, as well as to refinance Tembec’s existing debt.
The initial parties under the commitment letter were Bank of America, NA, Bank of America Merrill Lynch, Wells Fargo Bank, NA and Wells Fargo Securities, LLC. JPMorgan Chase Bank, NA, SunTrust Bank and SunTrust Robinson Humphrey, Inc. became parties to the restated commitment letter.
On Sunday Rayonier announced an amendment to its arrangement agreement to acquire Tembec. The amendment included a 17% increase in the consideration, to C$4.75 per Tembec share. The transaction is expected to close in the fourth quarter no earlier than Oct. 16.
Rayonier is a Jacksonville, Fla.-based supplier of high purity cellulose. Tembec is a Montreal-based manufacturer of forest products.
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