1) Rayonier (RYN) completed the spinoff of its advanced materials company, Rayonier Advanced Materials, on Friday. The new company will trade under the ticker ‘RYAM’ and join its parent company in the S&P Midcap 400 index. As a result of the transaction, Intrepid Potash (IPI) will get booted to S&P SmallCap 600 and consumer product company JAKKS Pacific (JAKK) will no longer be in any index.
2) Timken (TKR) is slated to complete the spinoff of its engineered steel company, TimkenSteel, after the close today. The new company will trade under the ticker ‘TMST’ and join its parent in the S&P Midcap 400. As a result of the transaction, investment bank Greenhill & Co (GHL) will get dropped to the S&P SmallCap 600 index and Spartan Motors (SPAR) will no longer be a part of any S&P index.
3) International Paper (IP) is spinning off its distribution solutions business, xpedx, and subsequently merging it with UWW Holdings to create the publicly traded Veritiv Corporation. IP will remain in the S&P 500, but the new company will trade under the ticker ‘VRTV’ and join the S&P Smallcap 600 index. As a result of the transaction, Higher One Holdings (ONE) will get dumped from the index.
Overall, a lot of spinoff action, but aside from International Paper’s spin, the new companies are in the same index as their parent. It’s always worth monitoring these transactions for buying opportunities created by forced selling.
Disclosure: Author holds no position in any stock mentioned.