Back to top

Image: Shutterstock

Rayonier (RYN) Prices $450M Senior Notes, To Repay Debt

Read MoreHide Full Article

Rayonier Inc. (RYN - Free Report) announced a senior notes offering through its operating partnership, Rayonier, L.P. for $450 million in aggregate principal amount.

The senior notes due on May 17, 2031, will carry an interest rate of 2.750% per year, and have been priced at 99.195% of their face value.

Interest on the notes will be paid semi-annually in May and November, commencing from Nov 17, 2021. The offering is anticipated to close on May 17, 2021, conditional on customary closing norms.

The company plans to use net proceeds to repay the $250 million outstanding under Rayonier Operating Company LLC’s 2020 incremental term loan facility. Following the allocation mentioned above, the remainder of the net proceeds will be used for general business purposes, including the repayment of 3.750% senior notes due 2022 at or prior to the maturity.

Its efforts to strengthen its near-term liquidity in these testing times and opportunistically tap the debt market amid the current low-interest-rate environment are strategic fits.Moreover, addressing its near-term debt maturities will enhance Rayonier’s financial flexibility and extend the average debt maturity term.

Notably, the company’s concerted measures in recent quarters have significantly strengthened its balance sheet, bolstered liquidity position and helped to fund for acquisitions. Rayonier exited first-quarter 2021 with $77.5 million in cash and cash equivalents. Hence, with manageable near-term capital commitments, the company has ample liquidity to invest and capitalize on the housing boom prevailing in the United States.

Markedly, amid the low mortgage rates and the opening of the economy, the demand for housing and wood products has been improving. Apart from the remarkable recovery in single-family housing construction, repair/remodel activity has been robust, driving record-highs for wood products’ prices. The tailwinds are likely to be beneficial for timberland REITs like Rayonier, Weyerhaeuser Company (WY - Free Report) , CatchMark Timber Trust, Inc. (CTT - Free Report) and PotlatchDeltic Corporation (PCH - Free Report) .

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>