Munksjö Oyj signs a new financing agreement to reduce financing costs and extend maturity
MUNKSJÖ OYJ, STOCK EXCHANGE RELEASE 11 September 2014 at 8:00 am CEST
Munksjö Oyj signs a new financing agreement to reduce financing costs and
extend maturity
Munksjö Oyj has entered into a new EUR 345 million term loan and revolving
credit facilities agreement with a maturity of five years.
The new facility will increase operating flexibility and reduce the cost of
financing. The interest payable under the facilities agreement depends on the
ratio of consolidated senior net debt to consolidated EBITDA. At current
leverage levels and with the current financial ratios, the annual saving
amounts to 150 basis points on the drawn amounts, corresponding to
approximately EUR 5 million of reduced financial expenses on an annual basis.
The financing is provided by Nordea, Danske Bank and SEB and replaces the
company's previous EUR 365 million financing agreement signed in May 2013.
The refinancing is expected to be implemented before the end of September 2014.
In connection with the repayment of the existing financing in the third quarter
of 2014, Munksjö will expense a previously capitalised financing cost of
approximately EUR 7 million. The expensed financing cost has no cash flow
impact. The new financing will have a positive cash flow effect from the fourth
quarter of 2014 onwards.
Munksjö Oyj
For further information, please contact:
Kim Henriksson, CFO, tel. +46 10 250 1015
Laura Lindholm, Investor Relations Manager, tel. +46 10 250 1026
Munksjö - Materials for innovative product design
The Munksjö Group is an international specialty paper company with a unique
product offering for a large number of industrial applications and
consumer-driven products. Founded in 1862, Munksjö is among the leading
producers in the world of high-value added papers within attractive market
segments such as Decor paper, Release Liners, Electrotechnical paper, Abrasive
backings and Interleaving paper for steel. Given Munksjö's global presence and
way of integrating with its customers' operations, the company forms a global
service organisation with approximately 3,000 employees. Production facilities
are located in France, Sweden, Germany, Italy, Spain, Brazil and China. Munksjö
Oyj is listed on NASDAQ OMX Helsinki. Read more at www.munksjo.com.