Rayonier Advanced AccoutrementsInc.( NYSE RYAM)( the “ Company ”), the global leader in High chastity Cellulose, moment blazoned that it has reached an agreement with lenders under its Term Loan Credit Agreement to gain fiscal covenant relief for the period beginning with the fourth quarter of the Company’s 2023 financial time through the end of its 2024 financial year.
The correction amends that certain Term Loan Credit Agreement, dated as of July 20, 2023( the “ Term Loan Credit Agreement ”), to, among other effects, increase the maximum consolidated secured net influence rate, as defined in the Term Loan Credit Agreement, that RYAM must maintain through its 2024 financial time. Pursuant to the correction, RYAM is needed to maintain a consolidated secured net influence rate of5.25 to1.00 for the fourth financial quarter of 2023 through the alternate financial quarter of 2024,5.00 to1.00 for the third financial quarter of 2024,4.75 to1.00 for the fourth financial quarter of 2024 and4.50 to1.00 for each financial quarter later. RYAM agreed to pay the lenders under the Term Loan Credit Agreement certain freights in connection with the correction. “ Working collaboratively with our lenders at Oaktree, we reached a correction that gives us access to liquidity and provides functional inflexibility to execute our strategy, ” said De Lyle Bloomquist, President and Chief Executive Officer. “ While we remain confident that we could have managed within the covenant, the added inflexibility should give comfort to crucial stakeholders, including debt and equity investors, as we execute our strategy to ameliorate the balance distance and grow our biomaterials business. ” Wachtell, Lipton, Rosen & Katz served as legal counsel to RYAM and Sullivan & Cromwell LLP served as legal counsel to Oaktree in this sale. fresh details of the sale will be issued in a Form 8-K filed with the SEC.
About RYAM
RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals, and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the U.S., Canada, and France, RYAM employs approximately 2,500 people and generated $1.7 billion of revenues in 2022. More information is available at www.RYAM.com.
