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2011-09-21 15:00:00 CEST 2011-09-21 15:00:47 CEST REGULATED INFORMATION Tikkurila Oyj - Company AnnouncementTikkurila restructures its debt financingTikkurila 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@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 [HUG#1548592] |
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