Rayonier Advanced Materials raises €67 million for biomaterials

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In Florida, high-purity cellulose manufacturer Rayonier Advanced Materials Inc. has successfully raised €67 million (US$71.5 million) to bolster its biomaterials strategy. This financing includes €37 million in secured term loans from French banks Crédit Lyonnais, Arkéa Banque, and BNP Paribas, with an initial floating interest rate of approximately 5% and a maturity period of seven years. Additionally, Swen Capital Partners will contribute €30 million in preferred equity, acquiring a 20% stake in Rayonier Advanced Materials’ newly formed subsidiary, RYAM BioNova S.A.S.

“The formation of BioNova and this latest round of financing are pivotal in our strategic push into biomaterials,” De Lyle Bloomquist, President and CEO of Rayonier Advanced Materials, said in a press statement. “With this green capital, we are poised to drive over $40 million in EBITDA from these initiatives in 2027, underscoring our commitment to growth and sustainability.”

The capital raised will be directed toward expanding BioNova’s operations, including the development of a second-generation bioethanol plant and a prebiotics project. SWEN’s investment in BioNova values the new entity at over $160 million.

Rayonier Advanced Materials specializes in cellulose-based products used in various applications, including filters, food, and pharmaceuticals. The company generated $1.6 billion in revenue in 2023 and operates manufacturing facilities in the U.S., Canada, and France.