Resolute Forest Products eyes $300M bond print to refinance debt

Resolute Forest Products Inc. will hold an investor call at 11 a.m. ET today to propose a $300 million offering of five-year (non-call two) senior notes, sources said. Bookrunners for the offering are BofA Securities, BMO Capital Markets and Wells Fargo.

Pricing for the bonds is expected on Jan. 20.

Proceeds, together with cash on hand and/or borrowings under the company's asset-based lending facility and/or senior secured credit facility, are earmarked to redeem all of its outstanding $375 million of 5.875% senior notes due 2023 at par.

S&P Global Ratings has assigned its B issue-level rating to the proposed debt, with a 5 recovery rating. Moody's has weighed in with a B2 rating. Both agencies today revised the outlook on Resolute Forest Products to stable, from negative.

“The outlook revision reflects improved prospects for Resolute's credit measures and liquidity over the next two years,” Ratings said today.

The new notes are structured with an issuer-friendly first call at par plus 50% of the coupon, as well as an up-to-40% equity claw at par plus the coupon during the non-call period.