1 Pricing Supplement No. 1 dated January 27, 1999 Rule 424 (b) (2) File No. 333-52857 (To Prospectus dated August 18, 1998 and 33-52855 Prospectus Supplement dated November 16, 1998) Cusip # 75507QAL6 Rayonier Inc. Medium-Term Notes (Fixed Rate) Payable May 15 and November 15 Due Nine Months or More from Date of Issue - -------------------------------------------------------------------------------- Principal Amount: $50,000,000 Trade Date: January 27, 1999 Issue Price: 100 Original Issue Date: February 1, 1999 Interest Rate: 6.15% Agent's Commission: 0.50% Maturity Date: February 2, 2004 Net Proceeds to Issuer: $49,750,000 - -------------------------------------------------------------------------------- Redemption: [X] The Notes cannot be redeemed prior to maturity [ ] The Notes may be redeemed prior to maturity Initial Redemption Date: Initial Redemption Price: Annual Redemption Price Reduction: Repayment: [X] The Notes cannot be repaid prior to maturity [ ] The Notes can be repaid prior to maturity at the option of the holder Repayment Price: Repayment Date: Original Issue Discount Note: [ ] Yes [X] No Total Amount of OID: Original Yield to Maturity: Initial Accrual Period OID: Form: [X] Book Entry Depositary: DTC [ ] Certificated Selling Agent: [X] Credit Suisse First Boston ($ 15,000,000) [X] Morgan Stanley & Co. ($ 30,000,000) [X] Chase Securities ($ 5,000,000) Other Provisions: