Hedge fund Chatham Asset Management (Chatham), which manages funds that beneficially own approximately 6.3 per cent of the outstanding common stock of Rayonier Advanced Materials (RYAM) and is a substantial bondholder of the Company, has sent a letter to the independent members of the company’s Board of Directors expressing concerns that management is not taking action quickly enough to proactively address the Company’s upcoming debt maturities.
In light of rising interest rates, Chatham delivered a suggested term sheet to RYAM management earlier this week outlining a possible exchange offer of the Company’s 5.50 per cent Senior Notes due 1 June, 2024 (the 2024 Notes) into new five year notes and proposed a buyback of a portion of the 2024 Notes that Chatham owns.
Chatham is urging management and the Board to take seriously this suggestion to capitalise on the Company’s strong liquidity while reducing gross debt and balance sheet risk.
