Tikkurila restructures its debt financing
(Thomson Reuters ONE) -
Tikkurila Oyj
Stock Exchange Release
September 21, 2011 at 4:00 p.m. (CET+1)
Tikkurila Oyj restructures its debt financing by refinancing the current EUR
180 million debt package, by entering into a bilateral EUR 25 million debt
facility, and by starting a commercial paper program of EUR 100 million nominal
value. The restructuring aims at a more diversified and flexible debt structure.
Today, Tikkurila Oyj has signed an unsecured long-term club loan of EUR 180
million with three banks, which will fully refinance the current debt facility
of similar size, entered into in 2010. The new unsecured debt facility is
entered into with a club of three banks, and has two components: a EUR 60
million term loan with a bullet structure and a five-year maturity, as well as a
EUR 120 million revolving credit facility with a three-year maturity, having two
one-year extension options. There are two covenants in the debt package: net
interest-bearing debt to EBITDA ratio and gearing ratio. Due to this
rearrangement, approximately EUR 1.0 million non-recurring, non-cash financial
expense will be recognized in September 2011, based on the 2010 expenses accrued
over the original loan tenure.
The previously mentioned EUR 120 million revolving credit facility also acts as
a back-up facility for Tikkurila's new commercial paper program that has a
maximum aggregate nominal value of EUR 100 million, and under which Tikkurila
Oyj can issue unsecured debt with a maturity of less than one year. The
commercial paper issuance is targeted to start with immediate effect.
Moreover, the company has decided to enter into a bilateral five-year, EUR 25
million multipurpose credit facility with an international banking counterparty.
The signing of this facility is expected to take place by the end of October
2011.
The restructuring will lead to a more diversified debt structure, matching the
seasonal nature of Tikkurila's business better and increasing the group's
financial flexibility. This also increases the average maturity of debt, and
decreases margins compared to the current situation. In addition to the debt
facilities described above, the group has overdraft facilities and trade finance
facilities, such as leasing and factoring, in use.
Tikkurila Oyj
Erkki Järvinen, President and CEO
For further information, please contact:
Jukka Havia, CFO, mobile +358 50 355 3757, jukka.havia(at)tikkurila.com
Tikkurila provides consumers, professionals and the industry with user-friendly
and environmentally sustainable solutions for protection and decoration.
Tikkurila is a strong regional player that aims to be the leading paint company
in the Nordic area and Eastern Europe including Russia. - Tikkurila inspires you
to color your life.
www.tikkurilagroup.com
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Source: Tikkurila Oyj via Thomson Reuters ONE
[HUG#1548592]
Unternehmensinformation / Kurzprofil:
Datum: 21.09.2011 - 15:00 Uhr
Sprache: Deutsch
News-ID 68252
Anzahl Zeichen: 3676
contact information:
Town:
Vantaa
Kategorie:
Business News
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