Canadian firm Resolute Forest Products Inc. has completed the sale of its kraft pulp and paper mill in Catawba, S.C., to Ontario, Calif.-based New-Indy Containerboard LLC. The company initially announced terms of the asset purchase agreement on October 2, 2018, according to a Recycling Today report.
According to Resolute Forest Products, 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," said Yves Laflamme, president and CEO of Resolute, in a statement. "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."
Resolute maintained it has agreed to use the majority of the proceeds from the asset sale to repurchase $225 million of its 5.875 percent Senior Notes due in 2023.
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.