Resolute Forest Products Inc. [on Jan. 20] announced that it priced the private offering of $300 million aggregate principal amount of its senior unsecured notes due 2026 (the “2026 Notes”) at 4.875% and 100% of par value. The 2026 Notes will be unsecured and will be guaranteed by all of Resolute’s material wholly owned U.S. subsidiaries.
Resolute expects to use the net proceeds from the offering of the 2026 Notes, together with cash on hand and/or borrowings under the Company’s senior secured asset-based revolving credit facility and/or its senior secured credit facility, to redeem all of its outstanding 5.875% senior notes due 2023 (the “2023 Notes”), of which $375 million aggregate principal amount is currently outstanding.
The company [on Jan. 20] instructed the 2023 Notes indenture trustee to give a notice of redemption to redeem all outstanding 2023 Notes on February 18, 2021 at a price of 100.000% of the aggregate principal amount thereof, plus interest to, but not including the redemption date and depositing the redemption price for the 2023 Notes with the 2023 Notes indenture trustee.
The redemption is conditional on, among other things, the Company’s successful consummation of the sale of the 2026 Notes. The 2026 Notes offering is expected to close on February 2, 2021, subject to customary closing conditions.
The 2026 Notes are being offered and sold to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The 2026 Notes have not been and will not be registered under the Securities Act or any state securities laws. Therefore, the 2026 Notes may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
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 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 Forest Products 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.