Sylvamo SLVM Debt instrument, patronage distributions, cash rebate, percentage

We are receiving interest patronage credits under the Term Loan F-3, Term Loan F-2, and Term Loan F. Patronage distributions, which are made primarily in cash but also in equity in the lenders, are generally received in the first quarter of the year following that in which they were earned. Expected patronage credits are accrued in accounts and notes receivable as a reduction to interest expense in the period earned. After giving effect to expected patronage distributions of 90 basis points, of which 75 basis points is expected as a cash rebate, the effective net interest rate on the Term Loan F-3 was approximately 4.79% as of June 30, 2026, the effective net interest rate on the Term Loan F-2 was approximately 4.89% and 5.07% as of June 30, 2026 and December 31, 2025, respectively, and the effective net interest rate on the Term Loan F was 4.67% as of December 31, 2025.