Displaying items by tag: Resolute Forest Products
Resolute, Paper Excellence Merger Receives Canadian Competition Bureau Approval
The Paper Excellence Group (the "Group"), through its wholly-owned subsidiary Domtar Corporation ("Domtar"), a global diversified manufacturer of pulp and speciality, printing, writing, and packaging papers, and Resolute Forest Products Inc. ("Resolute") (NYSE: RFP) (TSX: RFP), a global forest products company, jointly announced that the Canadian Commissioner of Competition has entered into a consent agreement regarding the parties' business combination. Once the combination has been finalized, Domtar will acquire all of the outstanding common shares of Resolute stock for $20.50 per share and one contingent value right tied to potential duty deposit refunds of up to $500 million.
The consent agreement filed by the Canadian Commissioner of Competition with the Competition Tribunal today completes one of the remaining conditions for the closing of the transaction.
The transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
Resolute is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 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 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 www.resolutefp.com for more information.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,400 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar's principal executive office is in Fort Mill, South Carolina and Domtar is part of the Paper Excellence group of companies. To learn more, visit www.domtar.com.
The Paper Excellence Group is a privately-held holding company that oversees individual pulp and paper business units. Its operations include the manufacturing of pulp and specialty, printing and writing, and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe. For more information on Paper Excellence, please visit www.paperexcellence.com.
SOURCE Paper Excellence Group
Paper Excellence Group and Resolute Announce Intention to Sell Thunder Bay Pulp and Paper Mill
The Paper Excellence Group and Resolute Forest Products Inc. have just announced their intention to sell Resolute's Thunder Bay pulp and paper mill to further facilitate the regulatory review process.
On July 6, the Paper Excellence Group through its wholly-owned subsidiary Domtar Corporation ("Domtar"), a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, entered into an agreement with Resolute, a global forest products company, to acquire all of the outstanding common shares of Resolute stock.
"Today's announcement is a clear demonstration of our commitment to timely complete the acquisition of Resolute," said Patrick Loulou, vice chair and chief strategy officer of the Paper Excellence Group.
"This is a very hard thing to do, but we believe it is necessary in order to accelerate our strategic combination with the Paper Excellence Group," stated Remi G. Lalonde, Resolute's president and chief executive officer. "The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future with any company fortunate enough to have them as part of their organization."
Any sale of the Thunder Bay pulp and paper mill will be contingent upon closing of the announced acquisition of Resolute by Domtar, and to applicable regulatory approvals. The acquisition of Resolute by Domtar continues to be expected in the first half of 2023, following stockholder and regulatory approvals, and satisfaction of other customary closing conditions, the receipt of which remain outstanding.
There can be no assurance that the required regulatory approvals will result from this process. Resolute and Domtar each reaffirm their general policy not to comment upon or respond to market rumor or speculation regarding the regulatory process or the transaction. Resolute and Domtar will not comment further on this matter unless and until definitive resolutions of the regulatory process are achieved.
Additional Information and Where to Find It
In connection with the proposed transaction, Resolute filed with the SEC a definitive proxy statement on Schedule 14A on September 20, 2022. Beginning on September 20, 2022, Resolute mailed the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the transaction. The definitive proxy statement and other relevant materials in connection with the proposed transaction filed by Resolute with the SEC may be obtained free of charge on Resolute's website at www.resolutefp.com or the SEC's website at www.sec.gov. Investors and security holders will also be able to obtain copies of the definitive proxy statement and other documents filed with Canadian securities regulatory authorities by Resolute at no charge through the website maintained by the Canadian Securities Administrators at www.sedar.com. Investors and stockholders of Resolute are urged to read the definitive proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction because they contain important information about Resolute and the proposed transaction.
Participants in the Merger Solicitation
Resolute and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of Resolute stockholders in connection with the proposed transaction under SEC rules. Investors and stockholders may obtain more detailed information regarding the names, affiliations and interests of Resolute's executive officers and directors in the solicitation by reading Resolute's proxy statement for its 2022 annual meeting of stockholders, the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and the definitive proxy statement and other relevant materials that have been or will be filed with the SEC in connection with the proposed transaction when they become available. Information concerning the interests of Resolute's participants in the solicitation, which may, in some cases, be different than those of Resolute's stockholders generally, are set forth in the definitive proxy statement relating to the proposed transaction.
About Resolute Forest Products
Resolute is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 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 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 www.resolutefp.com for more information.
About Domtar
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,400 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar's principal executive office is in Fort Mill, South Carolina and Domtar is part of the Paper Excellence group of companies. To learn more, visit www.domtar.com.
About Paper Excellence
The Paper Excellence Group is a privately-held holding company that oversees individual pulp and paper business units. Its operations include the manufacturing of pulp and specialty, printing and writing, and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe. For more information on Paper Excellence, please visit www.paperexcellence.com.
SOURCE Resolute Forest Products Inc.
Resolute Announces Indefinite Idling of Pulp and Paper Operations at Calhoun, TN Mill
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has just announced the indefinite idling of pulp and paper operations at its Calhoun (Tennessee) mill. Tissue manufacturing and converting will continue at the site and the adjacent distribution center will remain in full operation.
The company anticipates that the decision will directly affect 350 hourly and salaried positions at the Calhoun mill. The facility, which employs a total of 545 people, has an annual capacity of 147,000 metric tons of pulp and 149,000 metric tons of paper as well as 60,000 metric tons of premium tissue.
"We have taken the very difficult decision to indefinitely idle pulp and paper operations at Calhoun knowing how hard this is for the affected employees and their families," said Remi G. Lalonde, president and chief executive officer. "Success has proved elusive at Calhoun's pulp and paper operations, despite the best efforts of our dedicated employees and significant investments of time, energy and resources over the last few years."
The company continues to accumulate significant financial losses at the mill, even with the current strong market conditions for both the pulp and uncoated freesheet paper it manufactures. On a trailing twelve-month basis ending September 30, the pulp and paper operations in Calhoun produced an operating loss of $62 million before corporate expense allocation, including a depreciation expense of $10 million. In addition to these financial losses, the Calhoun mill faced additional significant production upsets in November and December.
Once the indefinite idling is completed, the company anticipates an improvement in its overall operating income, of approximately $35 million to $40 million, which reflects the lost pulp integration benefit with its tissue manufacturing of approximately $15 million and approximately $5 million from on-going costs associated with closed site maintenance.
Pulp and paper operations will continue for up to 60 days to ensure an orderly shutdown, to accommodate environmental safeguards and to transition customers. "Our focus now will be to support our employees through this difficult time, to operate for the remaining period with the same degree of focus on safety and quality, and to facilitate a smooth transition for our customers," added Mr. Lalonde. "As business conditions for our tissue operations continue to improve after a challenging 2021, our priorities remain focused on driving performance progress to leverage the full potential of our converting operations and the quality of the paper from the machine, together with the right customer mix, to seize the upside, even as the lost integration benefit will add to pulp costs."
The company will work with union leadership and will apply the mill's collective agreement and applicable federal and state laws as well as provide severance benefits to those directly affected. Resolute will also engage government officials and other local authorities in an effort to mitigate the impact of the indefinite idling.
As a result of today's announcement, the company expects to record, in the fourth quarter, non-cash impairment and accelerated depreciation charges of approximately $135 million to reduce the carrying value of the pulp and paper fixed assets to their residual value, as well as a write-down of inventory and a write-off of other assets of approximately $32 million in total. The company also estimates cash closure costs of approximately $45 million, mainly related to decommissioning, severance and other termination benefits, and other costs. Most cash closure costs will be disbursed in 2022.
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 and papers, which are marketed in over 50 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 www.resolutefp.com for more information.
SOURCE Resolute Forest Products Inc.
Resolute Reports Preliminary Third Quarter 2021 Results
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has just reported net income of $80 million, or $0.99 per diluted share, for the quarter ended September 30, compared to net income of $57 million, or $0.66 per diluted share, in the same period in 2020. Sales were $817 million in the quarter, an increase of $87 million from the prior year. Excluding special items, the company reported net income of $67 million, or $0.84 per diluted share, compared to net income of $62 million, or $0.72 per diluted share, in the third quarter of 2020.
- Q3 GAAP net income of $80 million / $0.99 per diluted share
- Adjusted EBITDA of $144 million
- Liquidity of $930 million / net debt of $184 million at quarter-end
- Repurchased 1.2 million shares in Q3 (2%) / 5.5 million shares over the last twelve months (7%)
- Stephanie Leclaire appointed senior vice president, corporate affairs and chief legal officer, following announcement of Jacques P. Vachon's upcoming retirement
"Coming off the record highs in benchmark lumber prices attained in May, this quarter's results reflect the sizeable impact of peak prices converging back toward trend," said Remi G. Lalonde, president and chief executive officer. "Our pulp and paper businesses built on the momentum of the second quarter, with strong pulp shipments and higher transaction prices in both segments. With our commitment to generate value for shareholders, this quarter we paid the $1 per share special dividend and repurchased 1.2 million shares at an average price of $10.95. The tissue business faced a slow recovery from commercial consumption and this year's consumer inventory rebalancing, in addition to pandemic-related logistics and labor challenges. This unfortunately overshadows the performance of Calhoun tissue, which was profitable in Q3."
Non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are explained and reconciled below.
Quarterly Operating Income Variance Against Prior Period
Consolidated
The company reported operating income of $102 million in the quarter, compared to $406 million in the second quarter of 2021. The $304 million variation reflects lower realized prices and shipments in wood products ($342 million), partly offset by higher realized prices in the pulp and paper segments ($32 million), and higher volume in market pulp ($9 million).
Segment operating income variance against prior period
Wood Products
The wood products segment generated operating income of $64 million in the quarter, a decrease of $341 million from the previous quarter. With benchmark lumber prices falling from the record highs attained in May, the average transaction price fell to $573 per thousand board feet, a $583 per thousand board feet, or 50%, decrease from the previous quarter. Wood products shipments also slipped by 64 million board feet, to 511 million, reflecting lower demand, capital projects downtime, vacation accommodation and workforce availability constraints in the U.S. South in the pandemic. Finished goods inventory rose slightly to 129 million board feet. The operating cost per unit (or, the "delivered cost") decreased by $4 per thousand board feet, or 1%, with gradually decreasing stumpage fees. EBITDA in the segment decreased by $340 million, to $75 million.
Market Pulp
The company generated operating income of $46 million in the market pulp segment, an increase of $16 million from the previous quarter. The average transaction price increased by $39 per metric ton, or 5%, to $826 per metric ton, with gains in all grades. The delivered cost was unchanged from the previous quarter at $665 per metric ton, as shipments rose by 30,000 metric tons as a result of inventory changes. Finished goods inventory fell by 11,000 metric tons, to 52,000. EBITDA in the segment improved by $16 million, to $52 million.
Tissue
The tissue segment incurred an operating loss of $9 million in the quarter, $2 million wider than the previous quarter. The average transaction price decreased by $60 per short ton, or 3%, due to unfavorable product mix, while delivered costs decreased by $109 per short ton, or 5%, with less downtime than in the previous quarter. Despite pandemic-related headwinds such as labor availability and logistics constraints, shipments increased by 4,000 short tons in the gradually improving retail market and a slowly recovering away-from-home market. Finished goods inventory was 6,000 short tons, down by 2,000 short tons compared to the prior period. Segment EBITDA fell by $1 million, to negative $4 million.
Paper
The company generated an operating income of $16 million in the paper segment in the quarter, an increase of $23 million from the previous quarter. The average transaction price rose by $54 per metric ton, or 9%, with price recovery reflecting tightening global markets. Shipments decreased by 18,000 metric tons and finished goods inventory remained unchanged at 72,000 metric tons, in both cases reflecting a destocking effort over prior periods. The delivered cost was unchanged, reflecting lower maintenance costs related to planned outages in the previous quarter offset by higher chemical and energy prices. Segment EBITDA improved by $22 million, to $31 million.
Consolidated quarterly operating income variance against year-ago period
Compared to operating income of $97 million in the third quarter of 2020, the $102 million operating income in this quarter reflects stronger selling prices in the pulp and paper segments ($99 million), offset by higher fiber and energy costs ($40 million), lower realized prices and shipments in wood products ($23 million), higher maintenance costs ($8 million) and a stronger Canadian dollar ($14 million). At $144 million, adjusted EBITDA in the third quarter was $4 million higher than the third quarter of 2020.
Corporate, Cash and Liquidity
The company generated $105 million of cash from operating activities in the quarter and invested $32 million, net, in fixed assets. It repurchased 1.2 million shares of common stock in the quarter, or 2% of the amount outstanding, for $14 million, and paid a special cash dividend of $1 per share of common stock, or $79 million in aggregate, on July 7 to holders of record at the close of business on June 28.
With $119 million of quarter-end cash, liquidity stood at $930 million, and net debt was $184 million. By quarter-end, the company had recorded cumulative softwood lumber duty deposits of $371 million on the balance sheet, including $39 million paid in the quarter.
Jacques P. Vachon has announced his intention to retire from his role as Resolute's senior vice president, corporate affairs and chief legal officer. His retirement is effective December 31, 2021. Mr. Vachon has been with Resolute for over 36 years, beginning his career as a lawyer at the company's offices in Québec City. As a member of the executive team for almost 25 years, Jacques has played an instrumental role in building the Resolute of today. "On behalf of the board and the executive team, past and present, I want to thank Jacques for his many years of loyal service to the company. As an executive, he has been the guardian of this company's moral compass for decades. We all join to wish him a happy, healthy and well-deserved retirement. Jacques has agreed to serve as a special advisor to me on a part-time basis for the next year," said Mr. Lalonde.
"By the same token, I'm thrilled to welcome Stephanie Leclaire to the executive team. She has outstanding credentials and, as our vice president for legal affairs for nearly 15 years, her experience covers the full range of practice areas, including transactional, governance, litigation, commercial and public policy. She is equal parts brilliant lawyer and practical businessperson, and, as such, there is no better candidate to succeed Jacques as our next senior vice president for corporate affairs and chief legal officer," added Mr. Lalonde.
Prior to joining the company as legal counsel in 2001, Ms. Leclaire was in private practice for five years at the law firms of Davis Polk & Wardwell LLP in New York and Paul, Weiss, Rifkind, Wharton & Garrison LLP in Paris. She holds bachelor's degrees in civil and common law from Université de Montréal and Osgoode Hall Law School of York University, as well as a master of laws from New York University School of Law. She is admitted to practice law in New York and Quebec.
Outlook
Mr. Lalonde added: "After a peak to trough swing of roughly $1,000 per thousand board feet in the third quarter, lumber prices seem to have stabilized at above-trend levels on a pre-duties basis. In the coming quarter, we are looking for higher lumber shipments and slightly lower fiber costs, but considering the path of market prices, we could see a quarter-over-quarter reduction in average transaction price. We expect paper realized prices to build on their third quarter momentum in the seasonally busier fourth quarter. Even as market pulp conditions have been very strong, particularly in North America and Europe, energy-related downtime in China is slowing global pulp demand and adding downward pressure on prices. In tissue, we will continue to focus on driving improvements and to leverage our integrated pulp advantage and bring to light the value of the assets as the market continues on its path to recovery."
Resolute Announces Share Repurchase Program
Resolute Forest Products Inc. has just announced that its board of directors authorized the repurchase of up to 15% of the company's common stock for aggregate consideration of up to $100 million. Repurchase transactions will be funded using the company's sources of liquidity.
"Having recently exhausted our previous repurchase program, it is appropriate to introduce a new program to be ready to act opportunistically to return capital to shareholders when conditions are right," said Yves Laflamme, president and chief executive officer. "We believe that proper capital allocation is a top priority and that it must be done in a disciplined manner. Accordingly, we intend to strike a balance between value-creating opportunities such as high-return projects with opportunities to return excess capital to shareholders."
Under the new share repurchase program, the company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time, and the company has no obligation to repurchase any amount of its common stock under the program. The repurchase program has no set expiration date. 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, as amended.
Resolute invests $38 million in its Kénogami mill in Quebec
Construction of a cellulose filament plant and optimization of the paper mill
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has just announced the construction of a commercial plant specializing in the production of cellulose filaments, a new sustainable biomaterial derived from wood fiber, at its Kénogami paper mill in Quebec as well as the optimization of the mill, at a total cost of $38 million.
"Our investment in cellulose filaments represents an opportunity to enter into non-traditional growth markets," stated Yves Laflamme, president and chief executive officer, during a press conference attended by government representatives, local dignitaries and employees. "The cellulose filament and Kénogami mill optimization projects will create synergies within our network of operations in Saguenay‒Lac-Saint-Jean."
Cellulose filaments are derived from wood fiber that is mechanically processed without chemicals or enzymes. They are manufactured entirely from renewable sources, resulting in a low carbon footprint. Offering a wide variety of uses and a number of benefits, the filaments can be integrated into commercial and consumer products from many industries, including transportation, construction and energy, increasing the resistance and durability of those products.
The new $27 million project will create eight jobs in the startup phase slated for 2021, and a total of 23 jobs once the plant reaches its full production capacity of 21 metric tons per day. These new jobs will be in addition to the 200 existing positions at the paper mill.
Resolute will also invest $11 million to enhance the Kénogami paper mill's short-term competitiveness by modernizing equipment in order to produce high-grade SCA+ supercalendered paper, allowing the mill to access more favorable markets. The mill has a production capacity of 133,000 metric tons of specialty papers per year.
The cellulose filaments will be marketed with the help of Performance BioFilaments Inc., a joint venture established in 2014 by Resolute and Mercer International Inc. that is dedicated to the development of non-traditional applications for cellulose filaments. The extraction technology was developed by FPInnovations Inc., one of Canada's largest scientific forest product research and development centers, of which Resolute is a member.
The project will be funded in part by Quebec's Department of Forests, Wildlife and Parks ($2.5 million), Investissement Québec ($4.2 million) and Natural Resources Canada ($4.9 million).
SOURCE Resolute Forest Products Inc
Resolute Further Enhances Liquidity with Amended and Restated Senior Secured Credit Agreement
Resolute Forest Products Inc. has just 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.
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.
Resolute Completes Five-Year Extension of ABL Credit Facility
Resolute Forest Products Inc. have just announced a 5-year extension of its senior secured asset-based revolving credit facility ("ABL credit facility") with an aggregate lender commitment of up to $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves.
"This successful extension improves certain terms and conditions, and supports the execution of our growth and transformation initiatives for the future," said Yves Laflamme, president and chief executive officer. "By renewing and extending the ABL through May 2024, we are taking advantage of our strong financial position and of attractive bank market conditions to lock-in a competitive source of liquidity for the long-term," added Remi Lalonde, senior vice president and chief financial officer.
The ABL facility is completely undrawn, with the exception of approximately $51 million of ordinary course letters of credit outstanding. The extension of the ABL credit facility includes a number of modifications, including a voluntary reduction in the lenders commitment of $100 million, which will lower fees while preserving the current available liquidity. The $500 million facility includes a $300 million tranche available to Resolute's U.S. borrowers and its Canadian borrowers, as well as a $200 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.
The credit agreement for the ABL facility contains customary covenants, representations and warranties, and events of default for asset-based credit agreements of this type. 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 ABL credit facility is provided by a syndicate of six banks, with Bank of America as administrative agent and collateral agent. Bank of America, Wells Fargo and Bank of Montreal acted as joint lead arrangers and joint bookrunners; CIBC and TD acted as co-documentation agents.
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 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 www.resolutefp.com for more information.
SOURCE Resolute Forest Products Inc.
Resolute Announces Four-Year Renewal of U.S. Labor Agreements
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has just announced a four-year renewal of the master collective agreement covering unionized employees of three U.S. pulp, paper and tissue mills. Unionized employees voted overwhelmingly to ratify the agreement at facilities in Calhoun (Tennessee), Augusta (Georgia) and Coosa Pines (Alabama).
"We are pleased to have reached agreement prior to contract expiration, indicative of our collaborative working relationship. As we look ahead, we have enhanced operational stability as, together, we focus on improving efficiency and the overall competitive position of these mills," said Yves Laflamme, president and chief executive officer. "Our continued union/management partnership serves the best interests of our employees, customers, shareholders and a range of other stakeholders."
The agreement takes effect for the Calhoun pulp, paper and tissue mill in May 2019 and runs through April 2023, in addition to spanning the four-year period between May 2020 and April 2024 for the Augusta newsprint mill and Coosa Pines fluff pulp operation. Approximately 775 unionized employees are covered by the agreement and are represented by the United Steelworkers (USW), the International Brotherhood of Electrical Workers (IBEW), and the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the U.S. and Canada (UA). The agreement improves wages in each of its four years.
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 www.resolutefp.com for more information.
Resolute Completes Sale of Catawba, SC, Paper and Pulp Mill
Resolute Forest Products Inc.has just announced that, on December 31, 2018, it completed the previously disclosed sale of the Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard, LLC ("New-Indy"), pursuant to the terms of the asset purchase agreement dated October 2, 2018. The total purchase price of about $300 million consists of $260 million in cash, before customary closing adjustments, and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations.
"We are pleased to have completed the sale of the Catawba mill to New-Indy and wish the new team every success with its investment in the diversification of the mill's operations," stated Yves Laflamme, president and chief executive officer of Resolute. "We want to thank our employees for their hard work and dedication toward this successful outcome, and are pleased that the community will continue to benefit from the mill's economic and social impact."
As previously disclosed, Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225 million of its 5.875% Senior Notes due in 2023, thereby improving financial flexibility.
TM Capital Corp. acted as Resolute's financial advisor on the transaction, while Akerman LLP and Troutman Sanders LLP acted as Resolute's legal counsels.
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 manufacturing 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 www.resolutefp.com for more information
SOURCE Resolute Forest Products Inc.