JACKSONVILLE, Fla. (News release) -- Rayonier Advanced Materials Inc. announced that it has reached agreement with lenders under its Senior Secured Credit Agreement and entered into an amendment under which, among other changes, the lenders have agreed to relax the Total Net Senior First Lien Secured Leverage Ratio and Interest Coverage Ratio tests through 2021. The Amendment also increases the interest rate margin on borrowings to be paid to lenders by a maximum of 1.25 percent, subject to operation of a pricing grid which provides for reduced interest rate margins with improved leverage ratios; provides additional collateral for the lenders; and requires the Company to maintain availability under its revolving credit facility in specified amounts that vary to reflect the seasonality of the business. Lenders were paid a customary fee as consideration for their consent to the Amendment.

Under the terms of the Amendment, the Company will also retain up to $50 million in net proceeds from the previously-announced sale of its Matane pulp mill, which remains on track to close in the fourth quarter, with the remainder of the net proceeds to be used to repay a portion of the Company's secured debt.

"Working collaboratively with our lenders, we reached an Amendment that addresses the current challenging commodity markets, provides enhanced financial flexibility through 2021 and allows us to avoid the potential covenant breach that led to the going concern disclosure in our second quarter financial statements," said Paul G. Boynton, Chairman, President and Chief Executive Officer. "We believe we now have the runway to manage the business through these challenging economic conditions, enabling us to emerge financially stronger and able to realize the earnings potential of our business."