Resolute’s $300 Million Sale of Catawba, SC, Paper and Pulp Mill

Foley Hoag represented New-Indy Containerboard LLC (a joint venture by The Kraft Group, LLC, and Schwarz Partners, L.P.). Akerman and Troutman Sanders advise Resolute.

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) has completed the previously disclosed sale of the Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard, LLC, pursuant to the terms of the asset purchase agreement dated October 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.

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.

Akerman advised Resolute with a team led by Mary V. Carroll (Picture). Troutman Sanders LLP acted also Resolute’s legal counsels.

Foley Hoag advised New-Indy Containerboard LLC with a team including Meredith Haviland, Joe Basile, Anne Seymour, Adam Kahn, Nick Romanos, Remi Kathawa and Mai Zymaris.

Involved fees earner: Mary Carroll – Akerman; Joseph Basile – Foley Hoag; Meredith Haviland – Foley Hoag; Adam Kahn – Foley Hoag; Remi Kathawa – Foley Hoag; Nicholas Romanos – Foley Hoag; Anne Seymour – Foley Hoag; Mai Zymaris – Foley Hoag;

Law Firms: Akerman; Foley Hoag;

Clients: New-Indy Containerboard LLC; Resolute Forest Products Inc;

Author: Ambrogio Visconti