S&P affirms Rayonier

S&P said it affirmed the BB- issue-level rating on Rayonier Advanced Materials Inc.'s $550 million senior unsecured notes due 2024.

The recovery rating remains 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery to creditors in the event of a payment default.

The BB- corporate credit rating and positive outlook on Rayonier are unchanged.

The agency said the affirmation follows the completion of the company's acquisition of Tembec on Nov. 20.

The acquisition resulted in changes to the capital structure of Rayonier, with the company increasing the size of its A-1 and A-2 term loans (unrated) to $230 million and $450 million from about $28 million and $250 million, respectively. As part of the acquisition, Rayonier also assumed roughly $100 million of Tembec's debt.

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