15:12:44 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Resolute Forest Products Inc
Symbol RFP
Shares Issued 91,229,306
Close 2019-05-14 C$ 9.18
Market Cap C$ 837,485,029
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Resolute Forest extends credit facility by five years

2019-05-14 17:28 ET - News Release

Mr. Yves Laflamme reports

RESOLUTE COMPLETES FIVE-YEAR EXTENSION OF ABL CREDIT FACILITY

Resolute Forest Products Inc. has completed a five-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 subfacility and a $200-million letter of credit subfacility. 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 Tetrault LLP represented Resolute.

About Resolute Forest Products Inc.

Resolute 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 approximately 40 facilities as well as power generation assets in the United States and Canada. Resolute has third party certified 100 per cent of its managed woodlands to internationally recognized sustainable forest management standards.

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