According to an 8K filed with the SEC, Bank of America served as administrative agent and collateral agent for an amendment to Rayonier Advanced Materials’ senior secured credit agreement. The amendment relaxes the financial covenants through 2022 and provides additional liquidity to Rayonier Advanced Materials by reducing the minimum availability the company is required to maintain under its revolving credit facility. The amendment added a 1% LIBOR floor and lenders were paid a customary fee as consideration for their consent to the amendment.
“In light of the COVID-19 pandemic, it was prudent to obtain additional financial flexibility to ensure continued compliance with our covenants,” Paul G. Boynton, president and CEO of Rayonier Advanced Materials, said. “We believe we now have the runway to manage the business through these challenging conditions, enabling us to continue to service our customers and emerge a stronger and more profitable organization.”
Rayonier Advanced Materials is a provider of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The company also manufactures products for lumber, paper and packaging markets.
