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Rayonier Advanced Materials Sees FY22 Adj. EBITDA $160M

Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) today announced updated Adjusted EBITDA guidance for full year 2022 of approximately $160 million subject to supply chain volatility and timing of

Benzinga · 06/09/2022 06:58

Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) today announced updated Adjusted EBITDA guidance for full year 2022 of approximately $160 million subject to supply chain volatility and timing of sales recognition. Comparatively, the Company delivered $128 million of Adjusted EBITDA in 2021. This updated guidance comes as the planned maintenance outages at all four of the Company’s manufacturing facilities is expected to be completed by the end of June.

Additionally, the Company announced that it repurchased $20 million of its 5.5 percent Senior Unsecured Notes in the open market at prices below par. The Company’s Board of Directors also recently approved an additional $50 million of repurchases under certain conditions based on the Company’s liquidity and trading levels. The Company expects to reduce Adjusted Net Debt to approximately $725 million by the end of 2022.

“With the completion of the planned maintenance outages at all four of our manufacturing facilities by the end of June, along with strong demand for our products, cost surcharge implementation and ongoing efforts to mitigate cost inflation, I am confident with our ability to achieve these results,” said De Lyle W. Bloomquist, President and Chief Executive Officer. “With our objective to reduce net debt to $725 million and Adjusted EBITDA guidance of $160 million, we expect to drive leverage to approximately 4.5 times Adjusted EBITDA by year end. This enhanced credit profile is expected to provide improved opportunities to refinance the 2024 debt maturity well ahead of the termination date.”