RFP - Resolute Forest declares special dividend $50M in new lumber investments

pixelprof/E+ via Getty Images Resolute Forest Products (RFP) +5% after declaring a $1.00/share special cash dividend and announcing $50M in additional projects in its wood products operations. Resolute says the investments would go to "high-return and quick payback" modernization and capacity expansion lumber projects in the Abitibi in Quebec, northwestern Ontario and the southeast U.S. The improvements at the U.S. sawmills are in addition to previously announced restart of the El Dorado sawmill in Arkansas; the company expects to complete all the projects by the end of Q3 2022. The company also confirms the repayment of all amounts outstanding under its revolving and term credit facilities, reducing debt by $180M in Q2. Resolute says the strong lumber markets allow it to share benefits directly with shareholders, but U.S. lumber futures have fallen by a third from last month's record.

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Resolute Forest declares special dividend, $50M in new lumber investments