JACKSONVILLE, Fla., May 6, 2024 (BUSINESS WIRE) --
Rayonier Advanced Materials Inc. (NYSE: RYAM) (the "Company"), the global leader in High Purity Cellulose, today announced it has reached agreement regarding the sale to OCP Lumber LLC of the Company's entitlements to refunds, including all accrued interest, related to the duties imposed on softwood lumber exported by the Company from Canada into the United States during a specific period between 2017 and 2021.
The sale price for the refund rights is $39 million with the opportunity for the Company to receive additional future sale proceeds contingent upon the timing and terms of the ultimate trade dispute outcome. Closing and funding is expected to take place within the next 30 days, contingent upon customary closing conditions.
"This innovative purchase and sale agreement is another key step for the Company in our ongoing efforts to strengthen our financial position, optimize our asset base and focus on our core business strategy," said De Lyle W. Bloomquist, President and CEO of RYAM. "By monetizing our rights to these softwood duty refunds, we are unlocking value from a non-core passive asset and further bolstering our balance sheet."
The Company previously owned six softwood lumber mills in Ontario and Quebec, Canada, and made duties deposits of approximately $111 million to the United States in connection with lumber exports into the United States between 2017 and 2021. At the time the Company sold these lumber assets in 2021, it retained all rights and obligations to these duties deposits.
About RYAM
RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.6 billion of revenue in 2023. More information is available at www.RYAM.com.
Forward-Looking Statements
Certain statements in this document regarding anticipated financial, business, legal, or other outcomes, including business and market conditions, outlook, and other similar statements relating to Rayonier Advanced Materials' or future or expected events, developments, or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "intend," "anticipate," and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events, and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained. It is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.
Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.
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SOURCE: Rayonier Advanced Materials Inc.
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