Business Context and Reporting Period
Company: Rayonier Advanced Materials Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 30, 2015
Reporting Period: Event-based report regarding a material definitive agreement and litigation settlement.
Key Financial Metrics
This filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on legal and contractual developments.
Material Changes and Events
- Entry into Material Definitive Agreement: On November 30, 2015, Rayonier A.M. Sales and Technology Inc. (a subsidiary) and Eastman Chemical Company entered into a new Chemical Cellulose Purchase and Sale Agreement.
- Effective Date: The new agreement is effective as of January 1, 2016.
- Superseding Prior Contract: This agreement supersedes and replaces the Chemical Cellulose Agreement originally effective January 1, 2012, between Rayonier Performance Fibers, LLC and Eastman.
- Litigation Settlement: The agreement constitutes the primary document for the settlement of ongoing litigation between the Company and Eastman, previously reported in August 2015.
Guidance, Outlook, and Risks
- Confidential Treatment: The Company intends to submit a request to the SEC to redact certain portions of the new agreement under Rule 24b-2. These redacted portions are not included in the public filing.
- Regulation FD Disclosure: A press release detailing the settlement and new contract was issued on December 1, 2015.
- Outlook: The filing does not contain forward-looking financial guidance or management commentary regarding future performance beyond the execution of the settlement agreement.
Investor Verification Checklist
- Verify the specific terms of the redacted portions of the Chemical Cellulose Purchase and Sale Agreement (Exhibit 10.1) once confidential treatment is resolved or if disclosed in future filings.
- Review the December 1, 2015 press release (Exhibit 99.1) for additional details on the settlement impact.
- Monitor future filings for any financial impact resulting from the litigation settlement and the new supply agreement with Eastman.
- Confirm the operational transition from the 2012 agreement to the 2016 agreement effective January 1, 2016.