Sylvamo to Pay Down Debt With $60 Million Released From Escrow
03 Diciembre 2024 - 7:00AM
Business Wire
Sylvamo (NYSE: SLVM), the world’s paper company, now has access
to $60 million initially put in escrow for disputed goodwill tax
deductions in Brazil which it intends to use to pay down debt.
The company’s lenders agreed to eliminate the escrow after a
Brazilian court ruled in its favor. The ruling—covering two-thirds
of the amount disputed in several proceedings—is subject to
appeal.
Due to the potential liability of the goodwill tax deductions,
lenders limited Sylvamo to $90 million in annual cash returns when
it became an independent company in 2021. In September 2023, the
company made a $60 million escrow deposit to remove the limit in
its credit agreement, allowing it to return more than $90 million
annually in cash to shareowners through share repurchases and
dividends.
“We intend to use the funds from the escrow elimination to help
pay down debt. Additionally, our strong cash flow will allow us to
pay down a total of $120 million in debt in the fourth quarter,”
said Jean-Michel Ribiéras, chairman and chief executive officer.
“This would reduce our gross debt by approximately 47% since our
2021 spinoff and allow us to maintain a strong financial
position.”
More information about the ruling is available in the third
quarter 2024 earnings presentation at investors.sylvamo.com.
About Sylvamo
Sylvamo (NYSE: SLVM) is the world’s paper company with mills in
Europe, Latin America and North America. Our vision is to be the
employer, supplier and investment of choice. We transform renewable
resources into papers that people depend on for education,
communication and entertainment. Headquartered in Memphis,
Tennessee, we employ more than 6,500 colleagues. Net sales for 2023
were $3.7 billion. For more information, please visit
Sylvamo.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20241203524500/en/
Investors: Hans Bjorkman, 901-519-8030,
hans.bjorkman@sylvamo.com Media: Adam Ghassemi, 901-519-8115,
adam.ghassemi@sylvamo.com
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