US $
MONTRÉAL, April 20, 2021
/PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP)
(TSX: RFP) today announced that it amended its $360 million senior secured credit agreement
dated October 28, 2019. The purpose
of the amendment is: to repay the $180
million of pre-amendment term loans by drawing on the
revolving facility and using cash on hand; to extend the maturity
date of the revolving facility from 2025 to 2027; to reduce the
spread on the term loan facility by up to 10 basis points; and
to reinstate in full the $180 million
term loan facility, with maturities of up to ten years, with a
delay draw period of up to three years. All other terms are
substantially unchanged.
"This amendment allows us to extend the maturity of our
credit facilities at very competitive rates while providing us
significant flexibility for further debt repayment without
impacting liquidity," said Sylvain A.
Girard, senior vice president and chief financial officer.
"Our financial strength and flexibility, which continue to
improve, serve as competitive advantages in the execution of our
strategic transformation initiatives," added Remi G. Lalonde, president and chief executive
officer.
The amended 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
remain 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 amendment to the 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 are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. They include, for
example, statements relating to the impacts of this financing, the
impact of the novel coronavirus (or, "COVID-19") pandemic and
resulting economic conditions on Resolute's business, results of
operations and market price of its securities, and to its: efforts
and initiatives to reduce costs, increase revenues, and improve
profitability; business and operating outlook; future pension
obligations; assessment of market conditions; growth strategies and
prospects, and the growth potential of Resolute and the industry in
which it operates; liquidity; future cash flows, including as a
result of the changes to Resolute's pension funding obligations;
estimated capital expenditures; and strategies for achieving its
goals generally. Forward-looking statements may be identified by
the use of forward-looking terminology such as the words "should,"
"would," "could," "will," "may," "expect," "believe," "see,"
"anticipate," "continue," "attempt," "focus on," "improve,"
"allow," "positioned," "maintain," "provide," "trend," "strategy,"
"seek," "evolve," "vision," "commit," "develop," "project,"
"progress," "build," "pursue," "plan," "grow," "reduce," "move" and
other terms with similar meaning indicating possible future events
or potential impact on Resolute's business or its 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. The potential risks and uncertainties
that could cause Resolute's actual future financial condition,
results of operations, performance and targets to differ materially
from those expressed or implied in this press release include, but
are not limited to, the impact of: the COVID-19 pandemic on our
business and resulting economic conditions; developments in
non-print media, including changes in consumer habits, and the
effectiveness of Resolute's responses to these developments;
intense competition in the forest products industry; any inability
to offer products certified to globally recognized forestry
management and chain of custody standards; any inability to
successfully implement Resolute's strategies to increase its
earnings power; the possible failure to successfully integrate
acquired businesses with Resolute or to realize the anticipated
benefits of acquisitions, such as its entry into wood manufacturing
in the U.S., and tissue production and sales, or divestitures or
other strategic transactions or projects, including loss of
synergies following business divestitures; uncertainty or changes
in political or economic conditions in the U.S., Canada or other countries in which Resolute
sells its products, including the effects of pandemics; global
economic conditions; the highly cyclical nature of the forest
products industry; any difficulties in obtaining timber or wood
fiber at favorable prices, or at all; changes in the cost of
purchased energy and other raw materials; physical, financial and
regulatory risks associated with global, regional, and local
weather conditions, and climate change; any disruption in
operations or increased labor costs due to labor disputes or
occupational health and safety issues; difficulties in Resolute's
employee relations or in employee attraction or retention;
disruptions to Resolute's supply chain, operations, or the delivery
of its products, including due to public health epidemics;
disruptions to Resolute's information technology systems including
cybersecurity and privacy incidents; risks related to the operation
and transition of legacy system applications; negative publicity,
even if unjustified; currency fluctuations; any increase in the
level of required contributions to Resolute's pension plans,
including as a result of any increase in the amount by which they
are underfunded; Resolute's ability to maintain adequate capital
resources to provide for all of its substantial capital
requirements; the terms of Resolute's outstanding indebtedness,
which could restrict its current and future operations; changes
relating to the London Interbank Offered Rate, which could impact
Resolute's borrowings under its credit facilities; losses that are
not covered by insurance; any shutdown of machines or facilities,
restructuring of operations or sale of assets resulting in any
additional closure costs and long-lived asset or goodwill
impairment or accelerated depreciation charges; any need to record
additional valuation allowances against Resolute's recorded
deferred income tax assets; Resolute's exports from one country to
another country becoming or remaining subject to duties, cash
deposit requirements, border taxes, quotas, or other trade remedies
or restrictions; countervailing and anti-dumping duties on imports
to the U.S. of the vast majority of Resolute's softwood lumber
products produced at its Canadian sawmills; any failure to comply
with laws or regulations generally; any additional environmental or
health and safety liabilities; any violation of trade laws, export
controls, or other laws relating to Resolute's international sales
and operations; adverse outcomes of legal proceedings, claims and
governmental inquiries, investigations, and other disputes in which
Resolute is involved; the actions of holders of a significant
percentage of Resolute's common stock; and the potential risks and
uncertainties set forth under Part I, Item 1A, "Risk Factors," of
Resolute's annual report on Form 10-K for the year ended
December 31, 2020, filed with the
U.S. Securities and Exchange Commission (or, the "SEC") on
March 1, 2021 which have been
heightened by the COVID-19 pandemic, including related governmental
responses and economic impacts, market disruptions and resulting
changes in consumer habits.
All forward-looking statements are expressly qualified by the
cautionary statements contained or referred above and in Resolute's
other filings with the SEC and the Canadian securities regulatory
authorities. Resolute 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 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.
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SOURCE Resolute Forest Products Inc.