Thursday, May 9, 2024 11:00 am

JACKSONVILLE, Fla. (News release) -- Rayonier Advanced Materials Inc., the global leader in High Purity Cellulose, announced it has reached agreement regarding the sale to OCP Lumber LLC of the Company's entitlements to refunds, including all accrued interest, related to the duties imposed on softwood lumber exported by the Company from Canada into the United States during a specific period between 2017 and 2021.

The sale price for the refund rights is $39 million with the opportunity for the Company to receive additional future sale proceeds contingent upon the timing and terms of the ultimate trade dispute outcome. Closing and funding is expected to take place within the next 30 days, contingent upon customary closing conditions.

"This innovative purchase and sale agreement is another key step for the Company in our ongoing efforts to strengthen our financial position, optimize our asset base and focus on our core business strategy," said De Lyle W. Bloomquist, President and CEO of RYAM. "By monetizing our rights to these softwood duty refunds, we are unlocking value from a non-core passive asset and further bolstering our balance sheet."

The Company previously owned six softwood lumber mills in Ontario and Quebec, Canada, and made duties deposits of approximately $111 million to the United States in connection with lumber exports into the United States between 2017 and 2021. At the time the Company sold these lumber assets in 2021, it retained all rights and obligations to these duties deposits.

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