Displaying items by tag: Resolute Forest Products

abiti122011Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has announced that it is disappointed with the decision by the U.S. Department of Commerce to impose countervailing duties against Resolute in connection with its investigation of imports of supercalendered paper from Canada. Commerce determined a subsidy rate of 17.87% for Resolute, and rates of 20.18% for Port Hawkesbury Paper LP and 18.85% for all other producers/exporters in Canada. On July 29, 2015, Commerce calculated a preliminary rate of 2.04% for Resolute. Resolute believes that Commerce's justification for Resolute's significant increase is based on a failure to consider all the relevant factors and an incorrect application of the statute.

All but 0.77% of the 17.87% subsidy rate is based on two specific programs Commerce said it discovered during its on-site verification of the Company's submission, based on records provided in the extensive disclosure. These programs relate to modest amounts received by Fibrek Inc., a subsidiary of the Company since 2012, for the Saint-Félicien mill in Quebec. This facility produces kraft pulp, only a very small portion of which is sold internally to add strength to mechanical supercalendered paper manufactured at the Dolbeau and Kénogami mills in Quebec. Resolute contends that it is unreasonable to conclude that the two programs in question represent a subsidy of any significance, if at all, for supercalendered paper production. But for these two programs, the subsidy rate applicable for Resolute would have been de minimis, and Resolute would be excluded from a possible countervailing duty order. It is important to note that in establishing Resolute's subsidy rate, Commerce did not attempt to quantify the financial significance of the purported subsidies; it relied instead on rates set in an unrelated 1997 administrative review concerning imports of pure and alloy magnesium.

Related Article: U.S. Department of Commerce Issues Countervailing Duties in Canadian Supercalender Case

The Company is especially discouraged by the suggestion that it "did not fully cooperate with the investigation," based on Commerce's contention that it did not act "to the best of its ability" and precluded verification of this ostensibly unreported assistance. The Company strongly disputes this suggestion: Resolute has complied with every request for information and went beyond any reasonable standard for a respondent to act to the best of its ability. Resolute is proud of its reputation for good governance and transparency, and it firmly believes that it fully cooperated with Commerce's investigation, committing significant resources and management time to provide Commerce with all the information required for a fair and credible investigation.

Resolute will continue to strongly defend its position in this matter. The Company produces supercalendered paper in Canada for export to the U.S. at its Dolbeau and Kénogami mills in Quebec.  The Company remains committed to customer service and to the delivery of high-quality products; it will work closely with customers to continue to meet their needs. 

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

Published in Canadian News

abiti122011Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) learned that the U.S. Department of Commerce released rates in the countervailing duty ("CVD") investigation of imports of supercalendered paper from Canada.  Commerce determined a final subsidy rate of 17.87% for Resolute, and rates of 20.18% for Port Hawkesbury Paper LP and 18.85% for all other producers/exporters in Canada.  On July 29, 2015, Commerce calculated a preliminary rate of 2.04% for Resolute.  Commerce's justification for the change is based on the application of "adverse facts available," saying that the Company "did not fully cooperate with the investigation."

Related Article : Resolute Responds to U.S. Department of Commerce Countervailing Duties Investigation

Resolute believes that it has fully cooperated with the investigation; it is surprised and disappointed with this announcement.  The Company also reiterates its position that its production of supercalendered paper has received negligible, if any, direct or indirect subsidies of any kind.  The Company will have no further comment until it has reviewed Commerce's written Issues and Decision Memorandum, which is expected to be issued later today.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities:  environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

Published in Canadian News

abiti122011Resolute Forest Products Inc. has just announced the completion of the selection of all the key equipment for the new tissue facility being built at its Calhoun pulp and paper mill, in Tennessee.

In addition to the previously announced Advantage NTT tissue machine, the company has committed to the purchase of the new Futura Andromeda converting technology and Infinity packaging solution. The selection of the state-of-the-art equipment followed a rigorous process to ensure best-in-class flexibility and ability to deliver the highest quality products for the premium quality consumer market.

On June 1, 2015, the company unveiled a $270 million investment in a new facility that will manufacture at-home, premium private label tissue paper, including bath and towel. The operation is expected to begin producing tissue in the first quarter of 2017.

"This completes the selection of major equipment and finalizes the first step in delivering the highest quality product to retail customers for their store brands," stated Richard Garneau, president and chief executive officer.

The move into the tissue market represents an important step forward in Resolute's growth strategy, and the company will continue to evaluate opportunities to expand its presence in this growing market segment.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc

Published in Canadian News

abiti122011Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has announced that a U.S. federal court has ordered the U.S. Department of Agriculture (USDA) to try again to provide "a reasoned and coherent treatment" of its decision implementing an order to collect taxes on softwood lumber shipments in the United States. On September 9, 2015, the court granted part of Resolute's motion contesting the lawfulness of the USDA's "Softwood Lumber Checkoff" order imposing the tax. According to the court, the government's explanation of its decision to exclude certain softwood lumber manufacturers from paying or voting on the tax "strains credulity," and the USDA was either "hiding the ball" or else "ill informed" about the number of companies it had exempted. The court also reserved for another day Resolute's claims that the order violates the U.S. Constitution.

The USDA instituted a tax in 2012 on all shipments of softwood lumber in North America as part of a scheme proposed by the Binational Softwood Lumber Council, which was created under the now-expiring 2006 Softwood Lumber Agreement between Canada and the United States. Resolute objects to paying this tax, which it considers an unnecessary additional burden on international commerce.

A USDA Administrative Law Judge upheld the "Checkoff" tax initially, despite finding that materials prepared by the Blue Ribbon Commission to promote the Checkoff order in a referendum "contained statements that are wrong." Upon reviewing the Administrative Law Judge's decision, U.S. District Court Judge James Boasberg agreed with Resolute that the procedures creating the tax may have been defective, and remanded the agency's decision.

In reaching his decision, Judge Boasberg said that "Resolute is understandably upset by the agency's evasion" and that Defendants' interpretation of the law "is dubious for several reasons."

The USDA must now come up with answers to the questions posed by Judge Boasberg. Because the tax has been in place for years and is part of a complex administration, Judge Boasberg is permitting it to continue while waiting for answers. However, should USDA not come up with satisfactory answers, the court may be forced to terminate the tax, and require USDA to provide restitution to Resolute for all funds Resolute has been required to pay.

If Judge Boasberg finds the answers on possible statutory violations satisfactory, he then would have to address Resolute's complaint that the entire scheme is unconstitutional. Under U.S. practice, courts resolve statutory disputes before addressing constitutional claims. When complaining parties prevail in their statutory claims, the Court does not reach, and therefore does not rule on, constitutional claims. So far, Judge Boasberg has not addressed Resolute's claims that the entire tax scheme is unconstitutional because he agrees that it might be contrary to law.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities:  environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

Published in North American News

abiti122011Resolute Forest Products Inc. has reported net income of $7 million (excluding special items), or $0.07 per share, for the quarter ended June 30, 2015, compared to net income of $17 million (excluding special items), or $0.18 per share, in the same period in 2014. Sales were $926 million in the quarter, down $165 million, or 15%, from the second quarter of 2014. GAAP net loss was $4 million, or $0.04 per share, compared to a net loss of $2 million, or $0.02 per share, in the second quarter of 2014.

US $

  • Q2 adjusted EBITDA of $89 million, up from $64 million in Q1
  • Significantly lower costs and favorable FX overcame effect of price declines
  • Q2 earnings of $0.07 per share (excl. special items) / GAAP net loss of $0.04 per share

"Our continued focus on costs helped to deliver solid results considering the challenges that continue to pressure our industry," said Richard Garneau, president and chief executive officer.  "Our competitive and diversified platform allowed us to weather the tough conditions, including the cyclical headwinds we faced in our growth businesses – market pulp and wood products – as well as increasing difficulty in paper grades, especially newsprint. We are working to maintain our competitive edge by focusing on the proven Resolute operating model in everything we do and pushing to optimize our asset base in order to maximize the utilization of our most cost-effective mills."

Non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are explained and reconciled below.

Operating Income Variance Against Prior Quarter

Consolidated

The company reported operating income of $16 million in the quarter, compared to an operating loss of $15 million in the first quarter. The $31 million improvement reflects lower costs ($38 million) due to the effect of spring temperatures, natural gas pricing and better mill productivity, as well as higher volume ($12 million) and the favorable effect of the weaker Canadian dollar ($9 million), despite lower realized prices across all grades ($31 million), particularly wood products and newsprint. There were no closure costs in the quarter, compared to $6 million of closure costs associated with the permanent newsprint capacity closures at Iroquois Falls, Ontario, and Clermont, Quebec, in the first quarter.

Adjusted EBITDA was $89 million in the quarter, $25 million higher than the $64 million reported in the first quarter. As more fully described below, in the quarter the company changed its presentation of pension and other postretirement benefit (or "OPEB") costs to present the net financing and remeasurement components as a special item adjustment used in its non-GAAP performance measures, including adjusted EBITDA. Adjusted EBITDA in the second quarter would have been $77 million without this adjustment, compared to the $50 million previously disclosed for the first quarter. The net financing and remeasurement components of pension and OPEB costs are now allocated solely to "corporate and other" in its segment presentation of operating income.

Market Pulp

Operating income in the market pulp segment was $26 million in the second quarter, $15 million higher than the first. The increase reflects a 7%, or $46 per metric ton, drop in the operating cost per unit (the "delivered cost"), due to better operating efficiency and seasonal factors, as well as a 23,000 metric ton increase in shipments, or 7%, mostly bleached softwood kraft. But the overall average transaction price slipped by $8 per metric ton, or 1%, due to significantly lower realized prices for softwood, which was only partly offset by higher realizations for fluff and bleached hardwood kraft. Adjusted EBITDA improved to $108 per metric ton, for a 16% margin, compared to $76 in the previous quarter and a trailing twelve month average of $88 per metric ton. Finished goods inventory at the end of the quarter was 14,000 metric tons lower, or 14%, which represents almost four days of supply.

Wood Products

The wood products segment generated an operating loss of $4 million in the quarter, compared to operating income of $5 million in the first quarter. The drop reflects a $33 per thousand board feet reduction in average transaction price, or 9%, because of a lower average market price in the quarter. Shipments, however, rose by 25 million board feet, or 6%, to 418 million board feet, and the delivered cost dropped by $15 per thousand board feet, or 4%, to $327 per thousand board feet. The lower delivered cost is mostly because of the first quarter weakness in the Canadian dollar and its lag effect on inventory costs, as well as better fiber recovery overall and higher production efficiency.  Finished goods inventory fell by 16 million board feet, or 12%. With the average transaction price in the quarter at multi-year lows, adjusted EBITDA was just $12 per thousand board feet, reflecting a 4% margin, compared to $33 in the previous quarter and a trailing twelve month average of $47 per thousand board feet.

Newsprint

Operating income in the newsprint segment was $3 million in the quarter, compared to an operating loss of $3 million in the first quarter. The improvement reflects a $31 per metric ton, or 6%, drop in the delivered cost, largely as a result of seasonally lower steam and power costs as well as lower prices for natural gas. Newsprint shipments were 14,000 metric tons higher, or 3%, but the overall average transaction price fell by a further $17 per metric ton, or 3%. Pricing conditions since late 2014 have reflected the increasing challenges for North American producers in the global newsprint business, who face an accelerating pace of global structural decline, a currency disadvantage in export markets because of the strong U.S. dollar, and very low operating rates outside of North America. The company reduced finished goods inventory by 8%, to 97,000 metric tons. Despite the challenging environment, adjusted EBITDA was $35 per metric ton in the quarter, for a 7% margin, compared to $24 in the previous quarter and a trailing twelve month average of $38 per metric ton.

Specialty Papers

Operating income in the specialty papers segment was $17 million in the second quarter, $12 million higher than the first quarter. As with the other segments, the improvement is the result of significantly lower costs, down by $40 per short ton, or 6%, which reflects seasonally lower steam costs, as well as better mill efficiencies and productivity compared to the first quarter. Shipments were 6,000 short tons higher, or 2%, but the average transaction price slipped by $10 per short ton, or 1%, as a result of decreases in supercalender and white paper pricing. Finished goods inventory rose by 22,000 short tons. Overall, adjusted EBITDA per short ton was $93, reflecting a 13% margin, compared to $58 in the previous quarter and a trailing twelve month average of $63 per short ton.

Consolidated Quarterly Operating Income Variance Against Year-Ago Quarter

The company reported operating income of $16 million in the quarter, compared to an operating loss of $8 million in the year-ago period, despite an $88 million drop in overall pricing, reflecting 17% lower average transaction prices for wood products, 11% for newsprint, 9% for market pulp and 2% for specialty papers. Newsprint and specialty paper shipments were also lower due to the impact of the company's 2014 capacity rationalization initiatives to, among other things, adapt to changing market dynamics. Excluding the $14 million increase in total pension and OPEB expenses, costs were $46 million lower in the quarter compared to the year-ago period, because of asset optimization initiatives, better mill efficiencies and productivity, lower prices for commodities and reduced maintenance costs. The increase in pension and OPEB expenses related to the $330 million increase in balance sheet net pension and OPEB liability in 2014. The weaker Canadian dollar favorably affected operating income by $41 million in the quarter. There were no closure costs in the quarter compared to the second quarter of last year when the company incurred $52 million of accelerated depreciation and other closure-related costs, most of which related to the permanent closure of an idled paper machine at our Catawba, South Carolina, mill.

Corporate & Finance

The company repurchased 3,195,127 shares of common stock in the quarter, or 3.4% of the outstanding amount, for aggregate consideration of $37 million. With $61 million of cash provided by operations and $39 million in capital expenditures, cash was $303 million at the end of the quarter. This provides the company with $771 million of liquidity, and net debt at $294 million.

"We took advantage of the recent stock price underperformance to buy back a significant portion of our stock under the recently-renewed share repurchase program," said Jo-Ann Longworth, senior vice president and chief financial officer. "This was an opportunistic move that does not compromise our ongoing value-creating initiatives to build capacity in markets with future growth opportunities as we continue to execute on our growth strategy, including the expansion into tissue and the pulp digester project in Calhoun, as well as the two new sawmills in Northern Ontario."

In the second quarter, the company changed its presentation of pension and OPEB costs to isolate the net financing and remeasurement components previously allocated to the operating segments and reallocate them to "corporate and other" in the segment presentation of operating income. Current service costs and amortization of prior service credits will continue to be allocated to the operating segments.

The company now also treats net financing and remeasurement components of pension and OPEB costs as a special item to be adjusted for purposes of establishing its non-GAAP performance measures, such as adjusted EBITDA and adjustments to earnings for special items. The change was applied retroactively by adjusting comparative financial information, including the information presented in this earnings release.

The company believes that isolating the net financing and remeasurement components of pension and OPEB costs, which are non-operating in nature, outside the operating segments and removing them from non-GAAP performance measures better reflects its ongoing operating results and improves their comparability between periods, and will therefore be more useful to investors. This approach is consistent with the indicators management uses internally to measure performance and also consistent with a number of industry peers.

Outlook

Mr. Garneau added: "Lower North American exports to Asia and softer than expected demand pulled lumber prices down to multi-year lows during the quarter. But in light of pricing momentum of late and the recent encouraging data on U.S. housing starts, our near-term outlook for lumber is more positive. For pulp, the slowing pace of growth in China, the strong U.S. dollar and lower demand for printing and writing grades dragged our average market pulp price down $67 per metric ton since its peak in the second quarter of last year. Accordingly, our near-term outlook for pulp is unclear. But we continue to believe that the underlying fundamentals for pulp and lumber will support stronger performance in the medium and long-term. Our quarterly results show that our platform of quality assets is very well positioned to capitalize on the recovery once this downturn has run its course."

He continued: "Even as conditions in the newsprint business continue to deteriorate, we expect to run our network to capacity, as we believe that our asset base gives us a competitive edge to weather the accelerating pace of global structural decline, the currency disadvantage in export markets because of the strong U.S. dollar, and very low operating rates outside North America. We expect a modest seasonal uptick in specialty paper shipments, but the weak euro and the accelerating pace of demand decline in North America could put pressure on selling prices. We will continue to focus on maximizing our competitive edge as we execute our growth strategy that will build the Resolute of the future with projects like the tissue manufacturing and converting facility scheduled for ramp-up in 2017 and our ongoing capacity-building initiatives in pulp and lumber."

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

For the full release with tables please follow this link
Published in Financial News

abiti122011Resolute Forest Products Inc. has announced the selection of a state-of-the-art tissue machine for the project at its Calhoun mill, in Tennessee. Supplied by Valmet, the Advantage New Tissue Technology (NTT) machine will produce premium quality tissue products for the consumer market.

This machine is part of the previously announced $270 million project to build a facility to manufacture at-home, premium private label tissue paper, including bath and towel. Preparation work has begun at Calhoun, and the machine is expected to start making tissue in the first quarter of 2017.

"This is the first time we will produce products directly for the consumer market," stated Richard Garneau, president and chief executive officer. "The selection of the Advantage NTT tissue machine is in line with our promise to retailers to install equipment that will offer the highest quality and the differentiation they seek for their store brands."

The move into the tissue market represents an important step forward in Resolute's corporate growth strategy, and the company will continue to evaluate opportunities to expand its presence in this growing market segment.

SOURCE Resolute Forest Products Inc.

For further information: Investors : Rémi G. Lalonde, Vice President and Treasurer , 514 394-2345, This email address is being protected from spambots. You need JavaScript enabled to view it.

Published in Canadian News
Tuesday, 02 June 2015 07:26

Resolute to Enter Tissue Market by 2017

Resolute Forest Products Inc. has announced a major decision to build a state-of-the-art facility to manufacture at-home, premium private label tissue paper, including bath and towel.

abiti122011"This is an important step forward for Resolute as we execute on our growth strategy in a way that maximizes our ability to capture synergies and deliver superior value," said Richard Garneau, president and chief executive officer. "We have been studying this option to diversify into the tissue business for quite some time, and we will continue to look at opportunities to expand our presence in this growing market. Once fully operational, Resolute will produce high-quality products at one of the most competitive and efficient tissue operations. We will work to be a preferred supplier of major private label retailers by being the best at meeting their needs in customer service and the quality promise of their store brands."

Resolute's tissue paper machine and converting operations will be built at the Calhoun mill in Tennessee. This $270 million project represents the largest investment made by Resolute since 2010. At full capacity, the new tissue and converting facilities will produce approximately 60,000 metric tons per year of at-home, premium bath tissue and towel, focused on the growing private label market. With market feasibility studies, technology selection and project engineering nearly complete, construction is expected to begin shortly, with ramp-up expected to start in the first quarter of 2017. The tissue machine will use excess slush pulp over and above the additional dried market pulp capacity associated with the previously announced continuous pulp digester project.

Unlike many other paper products, tissue demand has grown steadily for the past 20 years, and it is expected to continue growing in the future. Today, the at-home segment accounts for the majority of all tissue sold in North America. Over the next ten years, most of the sector's growth is expected to be in the premium quality tier, Resolute's target market.

The decision to enter the tissue market and to build at its existing Calhoun site further capitalizes on Resolute's unique ability to capture synergies by:

  • integrating Resolute's high-quality, low-cost, excess slush pulp for 100% of the tissue machine's fiber requirement;
  • utilizing the full capacity of the tissue machine in a state-of-the-art converting operation;
  • taking advantage of capital expenditure and fixed cost efficiencies by extending existing infrastructure;
  • having access to an attractive and cost-competitive fiber basket; and
  • being ideally located to serve Eastern U.S. markets.

The Calhoun mill also benefits from a strong working relationship with local labor unions. This investment will create 105 new jobs at the mill, in addition to the 50 positions associated with the continuous pulp digester.

This investment has also received support under existing business development programs offered by the state of Tennessee, the Tennessee Valley Authority (TVA) and the mill's home community in McMinn County.

The tissue project is in line with Resolute's disciplined and financially attractive capacity-building investments in markets with future growth opportunities, such as: the 2012 acquisition of Fibrek Inc., which added 60% to the company's market pulp capacity; the Calhoun digester project, which will increase market pulp capacity by another 100,000 metric tons per year as of the end of this year; and the sawmill capacity initiatives, including the complete refurbishment of the Ignace, Ontario, sawmill and the construction of a new sawmill in Atikokan, Ontario, which together are expected to add 275 million board feet to the company's annualized lumber capacity.

"We want to thank Resolute for expanding in Tennessee and for the new jobs they're creating in Calhoun and McMinn County," said Governor Bill Haslam. "We think it says a lot when companies like Resolute, who can choose to do business anywhere in the world, continue expanding here, and today's announcement is another step toward our goal of becoming the No. 1 location in the Southeast for high quality jobs."

"Resolute and the jobs they provide make a major impact in Calhoun and McMinn County," stated Randy Boyd, Tennessee Department of Economic and Community Development Commissioner. "They've been a cornerstone of this community since 1954 and this investment is a big vote of confidence in the quality of our state's workforce. We're focused on giving Tennesseans access to quality education so companies like Resolute have a pipeline of talented workers to ensure success for decades to come."

"TVA congratulates Resolute Forest Products on its recent announcement of expansion plans involving major investment and adding more than 100 new jobs in the Calhoun community," said TVA Senior Vice President of Economic Development John Bradley. "We, along with the state of Tennessee and community economic development partners, celebrate Resolute's continuing business success and longstanding commitment to grow in the Tennessee Valley."

"We want to thank Resolute for their continued faith in the McMinn County workforce, made evident by this $270 million investment. We understand they had other options, but they chose us and for that we are humbled and truly grateful," added John Gentry, McMinn County Mayor. "Resolute continues to diversify and pivot with the changing market demands. We are indeed both fortunate and proud they will continue to call McMinn County home for many years to come."

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. In addition, the company and Richard Garneau, president and chief executive officer, have been named to Canada's Clean50. And in January 2015, Resolute was awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

For further information: Investors: Rémi G. Lalonde, Vice President and Treasurer, 514 394-2345, This email address is being protected from spambots. You need JavaScript enabled to view it.; Media and Others: Seth Kursman, Vice President, Corporate Communications,Sustainability and Government Affairs, 514 394-2398, This email address is being protected from spambots. You need JavaScript enabled to view it.

Published in Canadian News

abiti122011Resolute Forest Products Inc. has announced that its board of directors has authorized a $50 million increase to the company's existing share repurchase program. 

"Today's announcement gives us another tool to continue to enhance shareholder value," said Richard Garneau, president and chief executive officer. "Share repurchases will complement our ongoing value-creating initiatives to build capacity in markets with future growth opportunities – such as the two new sawmills and the continuous pulp digester project – and upcoming initiatives as we continue to execute on our growth strategy.

The company is authorized to repurchase additional shares of its outstanding common stock for an aggregate purchase price of up to $83 million under the program, as amended. The program will be funded with cash on hand. 

The company is authorized to repurchase on the open market or in privately negotiated transactions in the U.S. The timing and amount of repurchases will depend on a number of factors, including market conditions as well as corporate and regulatory considerations. The program has no set expiration date and can be suspended, modified or discontinued at any time. The program imposes no obligation to repurchase any amount of common stock. The company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. In addition, the company and Richard Garneau, president and chief executive officer, have been named to Canada's Clean50. And in January 2015, Resolute was awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

For further information: Investors: Rémi G. Lalonde, Vice President & Treasurer, 514 394-2345, This email address is being protected from spambots. You need JavaScript enabled to view it.; Media and Others: Seth Kursman, Vice President, Corporate Communications, Sustainability and Government Affairs, 514 394-2398, This email address is being protected from spambots. You need JavaScript enabled to view it.

Published in Financial News
Wednesday, 27 May 2015 09:11

Resolute Enters Into New ABL Credit Facility

abiti122011Resolute Forest Products Inc. has announced that it has entered into a new five-year credit agreement for a senior secured asset-based revolving credit facility with an aggregate lender commitment of up to $600 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves.  This facility replaces the company's previous $665 million senior secured asset-based revolving credit facility, originally dated as of December 9, 2010, which was simultaneously terminated. 

"We took advantage of our strong financial position and attractive market conditions to replace the ABL with a facility that gives us more flexible terms and conditions, improves pricing, extends maturity and immediately lowers our cost of capital," said Jo-Ann Longworth, senior vice president and chief financial officer.  "This facility will support Resolute as we continue to execute on our growth and diversification initiatives for the future.

The $600 million facility includes a $450 million tranche available to Resolute's U.S. borrowers and its Canadian borrowers, as well as a $150 million tranche available only to its U.S. borrowers, in each case subject to the borrowing base availability of those borrowers.  The facility includes a $60 million swingline sub-facility and a $200 million letter of credit sub-facility.  The credit agreement also provides for an uncommitted ability to increase the revolving credit facility by up to $500 million, subject to certain terms and conditions. 

As of today, the facility is completely undrawn, with the exception of approximately $37 million of undrawn ordinary course letters of credit.  The new credit agreement contains customary covenants, representations and warranties and events of default for asset-based credit agreements of this type.  As with the facility that it replaces, the company's obligations under the facility are guaranteed by certain material subsidiaries and they are secured by first priority liens on accounts receivable, inventory and related assets. 

The facility is provided by a syndicate of nine banks, with Bank of America, N.A., as U.S. administrative agent and collateral agent, and Bank of America, N.A. (through its Canada branch), as Canadian administrative agent.  Bank of America Merrill Lynch and Bank of Montreal arranged the facility as joint lead arrangers and joint bookrunners; Barclays Bank and Wells Fargo also acted as joint lead arrangers and joint bookrunners. 

Troutman Sanders LLP and McCarthy Tétrault LLP represented Resolute.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities:  environmental, social and economic.

Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. In addition, the company and Richard Garneau, president and chief executive officer, have been named to Canada's Clean50. And in January 2015, Resolute was awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

For further information: Investors: Rémi G. Lalonde, Vice President & Treasurer, 514 394-2345, This email address is being protected from spambots. You need JavaScript enabled to view it.; Media and Others: Seth Kursman, Vice President, Corporate Communications, Sustainability and Government Affairs, 514 394-2398, This email address is being protected from spambots. You need JavaScript enabled to view it.

Published in Financial News

abiti122011Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced the permanent closure of paper machine #9 at its mill in Alma (Quebec), representing a reduction of 75,000 metric tons of annual specialty papers production capacity.

Resolute's decision to reduce specialty papers production capacity is driven by market weakness, exacerbated by fiber cost issues in Quebec, as well as ongoing misinformation campaigns by Greenpeace and other environmental activist groups.

"Greenpeace's ill-founded attacks misrepresent the company's forest management practices and cast unwarranted doubt on Resolute's compliance with Quebec's Loi sur l'aménagement durable du territoire forestier and our sustainability leadership. Quebec's forest management regime is among the best in the world, and the government ensures strict compliance. The regime deserves to be respected and upheld, and we are calling upon the Quebec government to continue to defend its standards and to refute these unjustified and unfounded attacks," stated Richard Garneau, Resolute's president and chief executive officer.

"These misinformation campaigns impact Resolute and people's lives, as they further destabilize the industry, triggering socioeconomic consequences for the communities that depend on the boreal forest for their livelihood," added Garneau.

The Alma paper mill employs approximately 340 people and has an annual production capacity of 350,000 metric tons of specialty papers across three machines. Machine #9 will be permanently closed at the beginning of April, resulting in the elimination of about 85 jobs and the permanent reduction of some 75,000 metric tons of production capacity.

Resolute understands the impact this decision will have on employees, their families and the local community. The company will work with union representatives and government officials to respond to the needs of affected employees. Local management will also ensure that each employee receives support, that the relevant conditions in the collective agreements are respected, and that as many employees as possible are transferred to other company facilities.

"The decision to rationalize our paper production capacity in Alma was a difficult one to make, as we are mindful of the impact it will have on the affected employees," added Richard Garneau. "Resolute remains committed to customer service and to the delivery of high-quality products, and will work closely with customers to continue to meet their needs," concluded Garneau.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.
Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. In addition, the company and Richard Garneau, president and chief executive officer, have been named to Canada's Clean50. And in January 2015, Resolute was awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.

SOURCE Resolute Forest Products Inc.

Published in Canadian News
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