Rayonier Advanced Matls Inc Stock Price, News & Analysis

Chatham Asset Management, a substantial shareholder of Rayonier Advanced Materials (RYAM), plans to withhold votes against directors Thomas I. Morgan and Lisa M. Palumbo during the annual meeting on May 16, 2022. Chatham, owning approximately 6.3% of RYAM, expresses concerns over poor stock performance and Board engagements. They criticize management's failure to quickly address debt maturities and compensation misalignments. Chatham calls for Board accountability after years of value destruction, highlighting a troubling 21% decline in stock price since asset sales.

Rayonier Advanced Materials Inc. (NYSE: RYAM) announced that its fluff pulp has achieved the 'Inspected Raw Material' status by Nordic Swan Ecolabelling. This certification indicates compliance with stringent environmental manufacturing standards, highlighting RYAM's commitment to sustainability. With an annual production capacity of 245,000 tons, RYAM's fluff pulp will allow consumers to identify eco-friendly products, enhancing marketability in absorbent hygiene markets. This recognition is a significant milestone in RYAM’s BioFuture initiative to promote sustainable, environmentally-friendly practices.

Chatham Asset Management, which owns approximately 6.3% of Rayonier Advanced Materials (RYAM), has urged the company's Board to engage in discussions regarding its proposed refinancing of the 5.50% Senior Notes maturing June 1, 2024. In a letter, Chatham expressed skepticism about the Board's confidence in obtaining future refinancing under better market conditions, criticizing the adoption of a poison pill as a defensive tactic against accountability. Chatham argues that its refinancing terms would benefit all shareholders and calls for the Board to act swiftly to de-risk the Company's balance sheet.

Rayonier Advanced Materials Inc. (NYSE: RYAM) announced a cost surcharge of USD 146 per metric ton for its cellulose specialties and viscose-grade products, effective April 1, 2022. This surcharge is a response to escalating inflation and rising costs in energy, logistics, chemicals, and wood. The company aims to maintain its product and service quality amid these challenges. Senior VP Joshua Hicks emphasized the need for this surcharge due to ongoing cost increases while assuring continued communication with customers.

Rayonier Advanced Materials Inc. (NYSE:RYAM) has rejected the refinancing proposal from Chatham Asset Management, determining it is not in the best interest of the company or its shareholders. Chatham proposed restructuring the company's Senior Notes, which would require significant cash and shift to higher coupon bonds. The company, confident in its liquidity and future refinancing options, intends to focus on strategic investments while monitoring market conditions for better opportunities. The company also aims for improved EBITDA despite facing inflation and supply chain issues.

Rayonier Advanced Materials Inc. (NYSE:RYAM) has adopted a limited duration stockholder rights plan to protect investor interests against rapid share accumulation without fair compensation. This decision follows unusual trading activity and a significant stake increase by Chatham Asset Management. The rights plan, effective immediately, becomes exercisable if any individual or group acquires 10% of the company's shares, ensuring the Board has time to assess control attempts. The plan is valid for 364 days and aims to enhance stockholder value.

Chatham Asset Management has urged Rayonier Advanced Materials (RYAM) to take immediate action regarding its upcoming 2024 debt maturities. Holding approximately 6.3% of RYAM's common stock and 72% of the 5.50% Senior Notes due June 2024, Chatham suggested an exchange offer to refinance the debt and utilize the company's strong liquidity. With rising interest rates, Chatham emphasizes the importance of reducing gross debt to enhance shareholder value and believes that prompt action could create a favorable market response.

Rayonier Advanced Materials Inc. (NYSE: RYAM) has granted an award of Leveraged Performance Units (LPUs) valued at $1.5 million to CEO Vito J. Consiglio. The LPUs are contingent on stock price growth over a three-year measurement period, with performance thresholds set at 10%, 25%, and 100%. Results below 10% yield no payout. If Mr. Consiglio resigns or is terminated for cause before payout, LPUs will be forfeited. The award complies with NYSE rules for public announcement of inducement awards.

Rayonier Advanced Materials reported a net loss of $28 million for Q4 2021, a slight improvement from Q4 2020, with a net loss from continuing operations of $24 million. Adjusted EBITDA increased to $26 million, up $12 million year-over-year, driven by higher High Purity Cellulose prices. Despite strong demand, total volumes declined 11% in Q4 due to supply-chain constraints. The company expects double-digit price increases for cellulose specialties in 2022 and aims to achieve a 40% reduction in greenhouse gas emissions by 2030.