Resolute Forest Products Inc. today announced that it has launched a private offering for $300 million aggregate principal amount of senior unsecured notes due 2026 (the “2026 Notes”).
The 2026 Notes will be unsecured and will be guaranteed by all of Resolute’s current and future wholly-owned U.S. subsidiaries that guarantee the Company’s senior secured asset-based revolving credit facility (the “ABL Credit Facility”) and/or its senior secured credit facility (the “Senior Secured Credit Facility”).
Resolute expects to use the net proceeds from the offering of the 2026 Notes, together with cash on hand and/or borrowings under the ABL Credit Facility and/or the Senior Secured Credit Facility, to redeem all of the outstanding $375 million aggregate principal amount of its 5.875% Senior Notes due 2023 (the “2023 Notes”).
Resolute expects to instruct the trustee under the 2023 Notes indenture to issue a conditional notice of redemption with respect to the outstanding $375 million aggregate principal amount of Resolute’s 2023 Notes for a redemption in accordance with the optional redemption provisions of the 2023 Notes indenture to occur on or about February 18, 2021 at a price of 100.000% of the aggregate principal amount thereof, plus interest to, but not including the redemption date.
The redemption is conditional on, among other things, the completion of this offering and the availability of the necessary cash on hand and/or borrowings under the ABL Credit Facility and/or Senior Secured Credit Facility to make the full redemption payment.
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