By Cristal Cody
Chicago, May 12 – Rayonier LP sold an upsized $450 million offering of 2.75% 10-year senior notes (Baa3/BBB-) on Wednesday at 99.195 for a 2.843% yield, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at Treasuries plus 115 basis points, low to talk in the Treasuries plus 140 bps area, based on information from a market source. The size of the deal was originally $400 million.
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 of Treasuries plus 20 bps until Feb. 17, 2031 and then an optional par call the last three months of the notes.
The notes will also have a change-of-control put at 101, based on a 424B5 filing with the SEC.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Truist Securities, Inc. are bookrunners for the deal. Lead manager is Raymond James & Associates, Inc.
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.
| Issuer: | Rayonier LP
|
| Guarantors: | Rayonier Inc., Rayonier Operating Co. LLC and Rayonier TRS Holdings, Inc.
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| Issue: | Senior notes
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| Amount: | $450 million
|
| Maturity: | May 17, 2031
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| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Truist Securities, Inc.
|
| Lead manager: | Raymond James & Associates, Inc.
|
| Co-managers: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 2.75%
|
| Price: | 99.195
|
| Yield: | 2.843%
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| Spread: | Treasuries plus 115 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps until Feb. 17, 2031; thereafter at par
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| Change of control: | At 101
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| Trade date: | May 12
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| Settlement date: | May 17
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 140 bps area
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