Rayonier Advance Materials amended its credit facility with Bank of America as administrative agent to support the company’s acquisition of Tembec, a Canadian manufacturer of forest products.

According to a related 8-K filing, the amended agreement includes the following:

  • $230 million U.S. dollar-denominated senior secured term A-1 loan facility
  • $100 million senior secured revolving credit facility
  • $150 million senior secured revolving credit facility
  • $450 million U.S. dollar-denominated senior secured term A-2 loan facility

Rayonier Products, a subsidiary of the company, will use up to $50 million of the borrowings made under the revolving facilities and the term A-1 loan facility.

The loans under will bear interest from and after the restatement date at either a base rate or an adjusted LIBOR rate plus an applicable margin in the case of base rate loans, ranging between 1.00% and 1.75%, and, in the case of adjusted LIBOR rate loans, ranging between 2.00% and 2.75%. The applicable margin for borrowings under the credit facilities will be based on a consolidated total net leverage

Bank of America, Wells Fargo Bank and CoBank were l/c issuers for the transaction. Merrill Lynch, CoBank, Wells Fargo Securities, JPMorgan Chase and SunTrust Robinson Humphrey were joint lead arrangers and joint bookrunners. PNC, TD Bank and DNB Capital were co-documentation agents.

Rayonier Advanced Materials is a global supplier of high-purity, cellulose specialties products, a natural polymer for the chemical industry.