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MONTRÉAL, May 14, 2019 /CNW
Telbec/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP)
today announced a 5-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
sub-facility and a $200 million
letter of credit sub-facility. 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 Tétrault LLP represented
Resolute.
Cautionary Statements Regarding Forward-Looking
Information
Statements in this press release that are not reported financial
results or other historical information of Resolute Forest
Products Inc. and its subsidiaries and affiliates
(collectively, the "company," "we," "our") are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They include, for
example, statements relating to the expected support of the ABL
credit facility for the execution of our growth and transformation
initiatives for the future. Forward-looking statements may be
identified by the use of forward-looking terminology such as the
words "should," "would," "could," "will," "may," "expect,"
"believe," "anticipate," "attempt," "project", "purport" and other
terms with similar meaning indicating possible future events or
potential impact on the company's business or the company's
shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a
number of business risks and uncertainties that could cause actual
results to differ materially. Additional information regarding
factors that may cause actual results to differ materially from
these forward-looking statements is available in the company's
filings with the SEC, including the risks and uncertainties
identified in Part I, Item 1A – Risk Factors of the company's
Annual Report on Form 10-K for the year ended
December 31, 2018.
All forward-looking statements in this press release are
expressly qualified by the cautionary statements set out or
referred to above and in the company's filings with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities. The company disclaims any obligation to
publicly update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
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, newsprint and specialty 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 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.
Visit www.resolutefp.com for more information.
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SOURCE Resolute Forest Products Inc.