Resolute Declares $175 Million Liquidity Enhancement

SEATTLE (Scrap Monster): Resolute Forest Products, Inc. (RFP) announced that it has entered into an amended and restated senior credit agreement for up to $360 million. This will replace the existing $185 million senior secured credit facility, thereby enhancing the liquidity by additional $175 million.

According to company press release, the new credit agreement includes a term loan facility of up to $180 million and a six-year revolving credit facility of up to $180 million. The draw period of the term loan facility is up to three years. The maturities are fixed at six to ten years from the date of drawing, it said.

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Remi G. Lalonde, senior vice president and chief financial officer noted that the renewal and upsize of the facility without pledging any additional collateral reflects the company’s strong financial position. The financial flexibility provided by the new agreement will further boost the execution of the company’s strategic transformation initiatives, he said. The future borrowings under the facility will be utilized for general corporate purposes, he added.