Rayonier Advanced Matls Inc Stock Price, News & Analysis

Rayonier Advanced Materials (RYAM) released preliminary financial results for fiscal year 2024, showing mixed performance. Net sales reached $1,639 million, slightly down by $4 million year-over-year, while loss from continuing operations improved by $59 million to $43 million.

Adjusted EBITDA saw significant growth, increasing 60% to $222 million from $139 million in 2023, with margin improving to 13.5% from 8.5%. The company generated $205 million in operating cash flow, up $69 million from prior year, and achieved $130 million in adjusted free cash flow.

Looking ahead to 2025, RYAM projects mid-single-digit percentage increases in Cellulose Specialties prices, though volumes are expected to decline due to Temiscaming plant suspension. The company faces potential impacts from proposed 25% tariffs on Canadian Paperboard exports to the U.S., which could affect up to $3.5 million monthly.

Rayonier Advanced Materials (RYAM) has secured €67 million in green capital financing, comprising €37 million in secured term loans from French banks at ~5% interest rate with 7-year maturity, and €30 million in preferred equity from Swen Capital Partners. The latter investment represents a 20% stake in RYAM BioNova S.A.S., valuing the new entity at over $160 million. The funds will support BioNova's growth initiatives, including a second-generation bioethanol plant and prebiotics project, with projected EBITDA of over $40 million by 2027.

Rayonier Advanced Materials (RYAM) reported Q3 2024 results with net sales of $401 million, up $32 million from prior year. Despite a net loss of $33 million, including a $25 million non-cash asset impairment and $7 million suspension charges, Adjusted EBITDA increased to $51 million. The company reiterated its 2024 Adjusted EBITDA guidance of $205-215 million and increased Free Cash Flow guidance to $115-125 million. RYAM successfully refinanced with a $700 million secured term loan and announced price increases up to 10% for cellulose specialties products. A fire at the Jesup plant is expected to impact earnings by $10 million in 2024.

Rayonier Advanced Materials (RYAM) announced the expiration of its cash tender offer for its subsidiary's 7.625% Senior Secured Notes due 2026. As of the November 4, 2024 expiration date, $135,486,000 in aggregate principal amount of notes were validly tendered, representing 29.93% of outstanding notes. An additional $143,000 in notes were submitted under guaranteed delivery procedures. The company expects to make payment for tendered notes on November 7, 2024. RYAM intends to legally defease all obligations under non-tendered notes pursuant to the indenture terms.

Rayonier Advanced Materials (NYSE: RYAM) has released its 2023 Sustainability Report, showcasing significant progress in environmental and social initiatives. The company is advancing toward its 2030 goal of 40% reduction in Scope 1 and 2 greenhouse gas emissions from 2020 levels, with nearly 78% of energy now sourced from renewables.

Key achievements include the launch of a 2G Bioethanol facility in Tartas, France, enhanced employee engagement programs, and comprehensive climate scenario analysis aligned with TCFD standards. The report details RYAM's commitment to sustainable growth, operational excellence, and community engagement, while expanding its Biomaterials growth strategy.

Rayonier Advanced Materials (NYSE: RYAM) has secured a $700 million Term Loan from funds managed by Oaktree Capital Management, Silver Point Capital, and Blue Torch Capital. The financing will be used to refinance existing debt obligations, including 2026 senior secured notes and 2027 secured term loan. The new Term Loan features a three-month Term SOFR plus 7% interest rate, adjustable based on leverage ratios, with a five-year maturity. The company must maintain specific consolidated net secured debt to covenant EBITDA ratios through 2027. The loan includes prepayment options with varying premiums over different periods.

Rayonier Advanced Materials (RYAM) announced that its subsidiary, Rayonier A.M. Products, has launched a cash tender offer to purchase all outstanding 7.625% Senior Secured Notes due 2026, with a current outstanding amount of $452,640,000. Holders who tender their notes by the expiration date of November 4, 2024, will receive $1,000 in cash per $1,000 principal amount, plus accrued interest. The settlement is expected on November 7, 2024. The tender offer is contingent on securing sufficient debt financing to fund the purchase and associated expenses.

Rayonier Advanced Materials (NYSE: RYAM) announced that its Jesup, Georgia facility has fully resumed operations ahead of schedule following an October 11 fire incident. The facility has returned to full production capacity with all lines producing on-grade material. The company is currently evaluating the financial impact of the incident and potential insurance recoveries, with further updates expected during the third-quarter earnings call on November 6.

Rayonier Advanced Materials (NYSE: RYAM) has announced its upcoming third quarter 2024 earnings release, scheduled for Tuesday, November 5, 2024, after market close. The company will host a conference call and webcast on Wednesday, November 6, 2024, at 9:00 a.m. ET to discuss the results. Investors can access the call via phone (877-407-8293 for US, 201-689-8349 for international) or through the company's website. A replay will be available until November 20, 2024.