Rayonier Inc., Jacksonville, Fla. USA, reports significant progress toward completing the planned separation of its Performance Fibers business from its Forest Resources and Real Estate businesses. The separation will occur by means of a tax-free spin-off of 100% of the common stock of Rayonier Advanced Materials Inc., which will contain the Performance Fibers business. The common stock of Rayonier Advanced Materials is expected to trade on the New York Stock Exchange (NYSE) under the symbol RYAM. 

 

Rayonier announced that the U.S. Securities and Exchange Commission has declared effective the Registration Statement on Form 10 filed by Rayonier Advanced Materials in connection with the spin-off. Additionally, the company announced that it also received a private letter ruling from the U.S. Internal Revenue Service (IRS) confirming the tax-free status of the planned spin-off, including certain related internal reorganization transactions. 

 

"With these latest developments, we are now firmly on track to separate effective June 27," said Paul Boynton, chairman, president and CEO. "This has been a complex endeavor, requiring significant effort throughout the company. Thanks to the tremendous effort of our employees, as well as our advisors, we will soon be two independent, industry-leading companies that will continue to deliver value to our shareholders." 

 

This past May 27, Rayonier’s board of directors approved the separation and declared a special distribution of one share of Rayonier Advanced Materials common stock for every three common shares of Rayonier held by Rayonier shareholders as of the close of business yesterday (June 18, 2014). With these latest approvals, the distribution is expected to be effective at 11:59 p.m., Eastern Time, on June 27. 

 

After the separation, Rayonier will own and operate the company’s existing Forest Resources and Real Estate businesses. Rayonier will be a geographically diverse forest resources company with 2.6 million acres of timberlands, including approximately 200,000 acres well situated for real estate development along coastal Florida and Georgia. The company will maintain its status as a tax-efficient real estate investment trust. 

Rayonier Advanced Materials will be a producer of high-value specialty cellulose fibers, with proprietary cellulose chemistry expertise and manufacturing process knowledge developed over 85 years. The company’s production facilities in Florida and Georgia manufacture a wide range of customized high purity products, using both hardwood and softwood.