Resolute Completes Sale of Pulp and Paper Mill in South Carolina
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Resolute Forest Products (Canada) announced on Jan. 1, 2019 that it completed the previously disclosed sale of the Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard, LLC ("New-Indy"), pursuant to the terms of the asset purchase agreement dated Oct. 2, 2018. The total purchase price of about $300 million consists of $260 million in cash, before customary closing adjustments, and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations.
"We are pleased to have completed the sale of the Catawba mill to New-Indy and wish the new team every success with its investment in the diversification of the mill’s operations," stated Yves Laflamme, president and chief executive officer of Resolute. "We want to thank our employees for their hard work and dedication toward this successful outcome, and are pleased that the community will continue to benefit from the mill’s economic and social impact."
As previously disclosed, Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225 million of its 5.875% Senior Notes due in 2023, thereby improving financial flexibility.
TM Capital Corp. acted as Resolute’s financial advisor on the transaction, while Akerman LLP and Troutman Sanders LLP acted as Resolute’s legal counsels.
