US $
MONTRÉAL, Dec. 15, 2021
/PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP)
(TSX: RFP) today announced a reset of the five-year maturity
of its senior secured asset-based revolving credit facility ("ABL
credit facility") with an aggregate lender commitment of up to
$450 million at any time outstanding, subject to borrowing
base availability based on specified advance rates, eligibility
criteria and customary reserves. The facility also includes an
Environmental, Social and Governance ("ESG") module with targets to
be agreed upon with the bank syndicate, which upon activation will
impact ABL pricing.
"This successful extension improves certain terms and
conditions and supports the execution of our growth and
transformation initiatives for the future. Our new ESG module also
demonstrates our commitment to delivering value for our
shareholders while driving economic activity in a sustainable and
responsible way," said Remi G. Lalonde, president and
chief executive officer. "By renewing and extending the ABL
through December 2026, 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 Sylvain A. Girard, senior vice
president and chief financial officer.
The ABL facility is completely undrawn, with the exception of
approximately $73 million of ordinary course letters of credit
outstanding. The extension of the ABL credit facility includes a
number of modifications, including a LIBOR transition.
The $450 million facility includes a $250 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 swing line 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 book runners; CIBC and TD acted
as co-documentation agents.
Troutman Pepper Hamilton Sanders LLP and McCarthy Tétrault LLP
represented Resolute.
Cautionary Statements Regarding Forward-Looking
Information
Statements in this press release that are not reported financial
results or other historical information of Resolute Forest Products
Inc. (with its subsidiaries, "we," "our," "us" or the "company")
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They include, for
example, statements relating to the expected support of the ABL
credit facility for the execution of our growth and transformation
initiatives for the future. 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," "generate,"
"delivering," "support," "improve," "driving" and other terms with
similar meaning indicating possible future events or potential
impact on our business or our shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a
number of business risks and uncertainties that could cause actual
results to differ materially. Additional information regarding
factors that may cause actual results to differ materially from
these forward-looking statements are set forth under Part I, Item
1A, "Risk Factors," of our 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 in this press release are
expressly qualified by the cautionary statements contained or
referred to above and in the company's other filings with the SEC
and the Canadian securities regulatory authorities. The company
disclaims any obligation to publicly update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
market pulp, tissue, wood products 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.