Rayonier talks $500 million 10-year notes to yield in 5½% area

By Paul A. Harris

Portland, Ore., May 8 - Rayonier A.M. Products Inc. talked its $500 million offering of 10-year senior notes (Ba3/BB+/) to price with a yield in the 5½% area, according to a market source.

Initial yield guidance was in the high 5% context, sources say.

The deal is set to price this afternoon.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A for life notes offering.

SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the co-managers.

The notes come with five years of call protection.

Proceeds will be used to fund the spin-off of Rayonier Advanced Materials Inc., a Jacksonville, Fla.-based manufacturer of specialty wood pulp, from Rayonier, Inc.

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