Rayonier accordion increases revolver by $50 million, enters new $250 million term loan

By Rebecca Melvin

New York, April 17 – Rayonier Inc. entered into an accordion increase agreement with CoBank, ACB, as administrative agent, and its other lenders to increase its revolving credit facility to $300 million from $250 million, according to an 8-K filed with the Securities and Exchange Commission.

After the accordion increase agreement, which was entered into April 16 and covers Rayonier, Rayonier TRS Holdings Inc. and Rayonier Operating Co. LLC, the company had $216.5 million of availability under the revolver. It may use a portion of amounts available under the revolver to finance its previously announced acquisition of Pope Resources.

The agreement governs the terms of company’s preexisting $900 million senior unsecured credit facilities, including an initial $250 million revolver entered into on April 1, a $350 million term loan facility entered into Aug. 5, 2015 and an incremental $300 million term loan facility entered into April 28, 2016.

In addition, Rayonier entered into a third amendment and incremental term loan agreement for an additional $250 million term loan, which Rayonier expects to use to finance its Pope Resources acquisition.

Interest on the incremental term loan facility is the one-month Eurodollar rate plus 100 basis points, plus an applicable margin that is currently 85 bps, based on the company’s leverage ratio.

The incremental term loan facility must be repaid on April 16, 2025.

Additionally, the amendment increased pricing on the revolver by 25 bps, decreased pricing for every level of the pricing grid other than the lowest leverage level for the initial term loan by 2.5 bps, increased the leverage ratio breakpoint between the second and third pricing levels to 52.5% from 50%, and permits transactions related to the acquisition of Pope Resources.

Rayonier is a Wildlight, Fla.-based timberland real estate investment trust.

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