Resolute Extends Maturity and Resets Term Loan Facility Under Senior Secured Credit Agreement

Resolute Forest Products Inc. 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.