Resolute Forest Products Inc. and Resolute FP Canada Inc. Enter into Credit Agreement
May 26 15
On May 22, 2015, Resolute Forest Products Inc., each of the U.S. subsidiaries of the company that owns any of the assets included in the borrowing base, Resolute FP Canada Inc. and each of the other Canadian subsidiaries of the company that owns, or is expected to own, any of the assets included in the borrowing base entered into a credit agreement, which the company refer to as the new credit agreement, with certain lenders and Bank of America, N.A., as U.S. administrative agent and collateral agent, and Bank of America, N.A. as the Canadian administrative agent. The new credit agreement replaces the company's existing $665 million credit agreement, originally dated as of December 9, 2010, as amended, among the Company, the subsidiaries of the Company from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent and collateral agent. The existing credit agreement was terminated on May 22, 2015, the date of the new credit agreement. The new credit agreement provides for a senior secured asset-based revolving credit facility with an aggregate lender commitment of up to $600 million at any time outstanding including a $60 million swing line sub-facility and a $200 million letter of credit sub-facility. The facility includes a $450 million tranche available to the U.S. Borrowers and the Canadian Borrowers and a $150 million tranche available solely to the U.S. Borrowers, in each case subject to the borrowing base availability of those Borrowers. The new credit agreement allows the Borrowers to periodically reallocate all or a portion of the commitments under the U.S. Sub-facility or the Canadian Su b-facility to the other sub-facility, subject to the consent of each lender whose commitment is being reallocated. In addition, the Company may convert up to $50 million of the commitments under either the U.S. Sub-facility or the Canadian Sub-facility to a first-in last-out facility, subject to the consent of each converting lender. The new 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 set out in the new credit agreement (if requested by the Borrowers and the lenders or one or more new lenders agree to provide the increased loan commitments). The new credit agreement provides that the terms and conditions of any such increased commitment (including interest rate and commitment fees) will be identical to the terms and conditions of the original commitments. Use of Proceeds: As of May 26, 2015, the Borrowers have no outstanding revolving loans and approximately $37 million outstanding undrawn letters of credit under the facility. In accordance with its stated purpose, the proceeds of the facility can be used by the Company for, among other things, refinancing the obligations under the existing credit agreement and financing the working capital needs and for general corporate purposes of the Borrowers and their subsidiaries. Guarantees: The obligations of the U.S. Borrowers under the new credit agreement are guaranteed by each of the other U.S. Borrowers and certain material U.S. subsidiaries of the Company, whom the company refer to as U.S. Guarantors, and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the U.S. Borrowers and the U.S. Guarantors. The obligations of the Canadian Borrowers under the new credit agreement are guaranteed by each of the other Borrowers, the U.S. Guarantors and certain material Canadian subsidiaries of the Company, or the Canadian Guarantors, and, together with the U.S. Guarantors, the Guarantors, and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the Borrowers and the Guarantors. Interest: Borrowings under the new credit agreement bear interest at a rate equal to, at the Borrower's option, the base rate, the Canadian prime rate or the Eurodollar rate, in each case plus an applicable margin. The base rate under the new credit agreement equals the greater of the agent's prime rate, the Federal Funds rate plus 0.5%, or the Eurodollar rate for a one month interest period plus 1.0%. The initial applicable margin is 0.5% with respect to the base rate and Canadian prime rate borrowings and 1.5% with respect to the Eurodollar borrowings. The applicable margin is subject, in each case, to monthly pricing adjustments based on the average monthly excess availability under the credit facility. Subject to maintaining certain average monthly excess availability thresholds, the applicable margin on Eurodollar borrowings will be reduced to 1.25% after completion of the first full quarter of the facility and, after 18 months, to 1.00% if the Company is in compliance with a leverage ratio of 1.75:1.00. If any of the commitments are ever converted into a FILO Facility, loans outstanding under the FILO Facility bear interest at a rate that is 1.25% per annum higher than the interest rate payable on revolving loans not made under the FILO Facility. Maturity: May 22, 2020.
Resolute Forest Products Inc. Reports Consolidated Unaudited Earnings Results for the First Quarter Ended March 31, 2015; Provides Capital Expenditure Guidance for the Fiscal 2015
May 7 15
Resolute Forest Products Inc. reported consolidated unaudited earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported sales of $920 million compared with $1,016 million for the same period last year. Operating loss was $15 million compared with $33 million for the same period last year. Loss before income taxes was $22 million compared with $58 million for the same period last year. Net loss attributable to the company was $33 million or $0.35 basic and diluted per share compared with $50 million or $0.53 basic and diluted per share for the same period last year. Net cash from operating activities was $29 million compared with net cash used in operating activities of $41 million for the same period last year. Cash invested in fixed assets was $40 million compared with $36 million for the same period last year. On non-GAAP basis, operating loss was $7 million and net loss was $30 million or $0.32 earnings per share compared with operating loss of $22 million and net loss of $26 million or $0.27 per share for the same period last year. EBITDA was $47 million compared with $16 million for the same period last year. Adjusted EBITDA was $50 million compared with $40 million for the same period last year. The company maintains low net debt level now at $273 million.
For 2015, the company continues to expect approximately $200 million of CapEx, with $130 million on value creating projects, including initiative to build capacity in lumber and pulp.
Resolute Forest Products Inc. to Report Q1, 2015 Results on May 07, 2015
Apr 15 15
Resolute Forest Products Inc. announced that they will report Q1, 2015 results at 9:00 AM, US Eastern Standard Time on May 07, 2015