Financial Reports & Markets
Resolute secures new $360M credit agreement
October 30, 2019 By Resolute Forest Products
Resolute Forest Products has secured a new credit agreement for $360 million, replacing the company’s existing $185 million senior secured credit facility.
“This renewal and upsize gives us an additional $175 million of liquidity – for over $740 million in total – and at very competitive rates, flexible terms and maturities of up to 13 years,” says Remi Lalonde, senior vice-president and chief financial officer. “Reflecting our strong financial situation, we renewed and upsized the facility without pledging any additional collateral.”
The amended and restated credit agreement includes a term loan facility of up to $180 million and a six-year revolving credit facility of up to $180 million. The term loan facility is available with a delayed draw period of up to three years, and the choice of maturities of six to ten years from the date of drawing.
At closing, the company repaid its $46.25 million term loan by borrowing under its new six-year revolving credit facility. Future borrowings under the senior secured credit facility will be used for general corporate purposes.
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