Rayonier raises FY24 adjusted EBITDA view to $205M-$215M from $180M-$200M

The company added, “The Company is actively pursuing the refinancing of its 2026 Senior Notes before they go current in January 2025 and strongly believes that, due to improving business performance and credit metrics, it will secure refinancing at satisfactory terms. The Company has engaged Houlihan Lokey to explore refinancing options. In October 2023, the Company announced that it is exploring the potential sale of its Paperboard and High-Yield Pulp assets located at its Temiscaming site. The Company continues to run a thorough process involving multiple suitors. While this process has been slowed due to complexities relating to the recently announced indefinite suspension of operations of the site’s HPC line, the Company remains highly committed to completing a near-term sale of these assets at a fair price. In July 2024, the Company indefinitely suspended operations at its Temiscaming HPC plant. This plan is expected to mitigate high capital needs and operating losses related to exposure to commodity viscose products and improve the Company’s consolidated free cash flow, however, future operational loss reductions will be partially offset by custodial site expenses. In connection with the suspension of operations, the Company expects to incur one-time operating charges in 2024 of approximately $25M-$30M, including mothballing and severance and other employee costs. Further, the Company also expects to incur non-cash charges in the Q3 related to asset impairments. The Company continues to expect that for 2024, the suspension of the Temiscaming HPC plant will be positive to Adjusted EBITDA and will increase free cash flow by $25M-$30M as lower capital expenditures and benefits from the monetization of working capital are expected to more than offset the one-time and other cash costs associated with the suspension of operations. The Company expects to generate between $205M-$215M of Adjusted EBITDA in 2024 with $100M-$110M of Adjusted Free Cash Flow, including passive asset sales but excluding any operating asset sales.”