Rayonier on deck for $400 million 10-year senior notes; price talk Treasuries plus 140 bps area

By Cristal Cody

Chicago, May 12 – Rayonier LP plans to sell $400 million of senior notes due May 17, 2031 (Baa3/BBB-) in the Wednesday market, according to a market source.

The notes are being talked in the Treasuries plus 140 basis points area.

The notes will be guaranteed by Rayonier Inc., Rayonier Operating Co. LLC and Rayonier TRS Holdings, Inc.

There will be an optional redemption with a make-whole premium and then the option for a par call.

The notes will also have a change-of-control put at 101, according to a 424B5 filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are bookrunners for the deal.

Proceeds will be used to repay the $250 million outstanding under the company’s 2020 incremental term loan facility, with the remainder used for general corporate purposes.

Rayonier is a real estate investment trust, timberland management and cellulose fiber producer based in Wildlight, Fla.

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