Financial Reports & Markets
RYAM amends Term Loan Credit Agreement
January 4, 2024 By P&PC Staff
Rayonier Advanced Materials (RYAM) has reached an agreement with lenders under its Term Loan Credit Agreement to obtain financial covenant relief for the period beginning with the fourth quarter of the company’s 2023 fiscal year through the end of its 2024 fiscal year.
The amendment amends that certain Term Loan Credit Agreement, dated as of July 20, 2023 (the Term Loan Credit Agreement), to, among other things, increase the maximum consolidated secured net leverage ratio, as defined in the Term Loan Credit Agreement, that RYAM must maintain through its 2024 fiscal year. Pursuant to the amendment, RYAM is required to maintain a consolidated secured net leverage ratio of 5.25 to 1.00 for the fourth fiscal quarter of 2023 through the second fiscal quarter of 2024, 5.00 to 1.00 for the third fiscal quarter of 2024, 4.75 to 1.00 for the fourth fiscal quarter of 2024 and 4.50 to 1.00 for each fiscal quarter thereafter. RYAM agreed to pay the lenders under the Term Loan Credit Agreement certain fees in connection with the amendment.
“Working collaboratively with our lenders at Oaktree, we reached an amendment that gives us access to liquidity and provides operational flexibility 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 flexibility should provide comfort to key stakeholders, including debt and equity investors, as we execute on our strategy to improve the balance sheet and grow our biomaterials business.”
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