Rayonier Advanced Materials Inc. (NYSE: RYAM), a global leader in High Purity Cellulose, announced today that it has finalized an agreement with OCP Lumber LLC for the sale of its entitlements to refunds, inclusive of all accrued interest, linked to the duties levied on softwood lumber shipments exported by the Company from Canada to the United States during a specific period spanning from 2017 to 2021. The agreed sale price for these refund rights amounts to $39 million, with potential additional proceeds contingent upon the final resolution of the trade dispute, subject to timing and terms. The transaction is slated to conclude within the next 30 days, pending customary closing conditions.
De Lyle W. Bloomquist, President and CEO of RYAM, remarked, “This innovative purchase and sale agreement represents another significant stride for the Company in fortifying our financial standing, optimizing our asset portfolio, and staying aligned with our core business strategy. By monetizing our entitlements to these softwood duty refunds, we are unlocking latent value from a non-core passive asset, thereby enhancing our balance sheet.”
In the past, the Company operated six softwood lumber mills in Ontario and Quebec, Canada, and had made duties deposits totaling approximately $111 million to the United States in connection with lumber exports to the country between 2017 and 2021. Upon divesting these lumber assets in 2021, the Company retained all rights and obligations linked to these duties deposits.
