RYAM - Rayonier adopts shareholder rights plan to block Chatham proposal

Rayonier Advanced Materials (RYAM) +1% pre-market after saying its board has adopted a short-term shareholder rights plan and declared a dividend distribution of one preferred share purchase right on each outstanding share, in an effort to block a proposal from activist shareholder Chatham Asset Management. Rayonier specifically noted the recent accumulation of a substantial position in the company by entities associated with Chatham, which has said it owns a 6.3% stake in the maker of cellulose-based products. Rayonier says Chatham's proposal is not in the best interest of the company and its shareholders, as the result of the contemplated transactions would be for it to use a substantial portion of its cash, including a significant payment to Chatham and to exchange 5.5% notes for notes with a much higher coupon. Finally, the company announced a cost surcharge of $146/metric ton applicable to all shipments of its cellulose specialties and viscose-grade

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Rayonier adopts shareholder rights plan to block Chatham proposal