Resolute Further Enhances Liquidity with Amended and Restated Senior Secured Credit Agreement
30 October 2019
MONTREAL, Oct. 29, 2019 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that it has entered into an amended and restated senior secured credit agreement for up to $360 million, replacing the company's existing $185 million senior secured credit facility. 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.
"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. Reflecting our strong financial situation, we renewed and upsized the facility without pledging any additional collateral," said Remi G. Lalonde, senior vice president and chief financial officer. "This is another tool to further enhance our financial flexibility in the execution of our strategic transformation initiatives," added Yves Laflamme, president and chief executive officer.
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.
The amended and restated senior secured credit agreement contains customary covenants, representations and warranties, and events of default for credit agreements of this type. The company's obligations under the facility are guaranteed by certain material U.S. subsidiaries and are secured by first priority liens on assets of its Calhoun (Tennessee) mill. The credit agreement also provides for an uncommitted option to increase the facility by up to an additional $360 million, subject to certain terms and conditions.
The amended and restated senior secured credit agreement was arranged and syndicated by American AgCredit. Troutman Sanders acted as legal counsel to Resolute.
Cautionary Statements Regarding Forward-Looking Information
Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. and its subsidiaries (collectively, the "company," "we," "our," or "us") are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the expected support of the amended and restated senior secured credit agreement for the execution of our strategic transformation initiatives. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business or our shareholders.
The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. Additional information regarding factors that may cause actual results to differ materially from these forward-looking statements is available in the company's filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of the company's Annual Report on Form 10-K for the year ended December 31, 2018.
All forward-looking statements in this press release are expressly qualified by the cautionary statements set out or referred to above and in the company's other filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. The company disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit resolutefp.com for more information.
SOURCE Resolute Forest Products Inc.