Pareto advises Forchem Oy on their successful placement of a EUR 70 million five-year senior secured bond

Pareto Securities Oy has advised Forchem Oy (“Forchem”), a leading European producer of pine chemical derivatives in Finland, on their successful placement of a five-year EUR 70 million senior secured bond. The proceeds from the bond issue will be used to repay existing debt.   

The bonds, maturing in July 2020, will bear a fixed interest rate of 4.90% (paid semi-annually). The company aims to list the bonds on NASDAQ OMX Helsinki within 1 year after the issue date.

The transaction was well received by the market and the demand from both Nordic and European investors were strong, as evidenced by the heavily oversubscribed book and the large number of investors. Altogether almost 50 investors, both institutional and private, participated in the issue. Due to the strong demand the transaction was closed within one day.

”With a new finance solution in place, Forchem establishes a strong footprint in the Nordic capital market which supports the company’s and its owners long term dedication to its business and Nordic presence. The strong investor demand and closing the bond early reflects a great trust in Forchem business, its strong market position in Europe and well reflects the successful development of the company in recent years after being acquired by Grupo Respol” says Risto Näsi, CEO of Forchem Oy.

 

For more information please contact Ville Takala, +358 9 8866 6023

 

Forchem Oy

Forchem is an innovative company within the chemical derivatives industry, and is one of the leading European producers of pine chemical derivatives. The company primarily produces rosin and fatty acids based products which are highly environmental friendly due to the raw material, crude tall oil, which is a renewable by-product of kraft pulping. Forchem is based in Rauma, Finland where the company also operates its plant, the single largest line dry distillation plant in the world.

About Us

Pareto Securities is an independent full service investment bank with a leading position in the Nordic capital markets and a strong international presence within the energy sector. Pareto Securities AB offers Swedish and foreign institutions, companies and private individuals investment services related to trading in stocks, shares in SPV’s and fixed income instruments, wide coverage both within equity- and credit research. Furthermore, Pareto Securities corporate finance offers ECM, M&A and DCM services as well as arrangement and syndication of new investment projects, arrangement and syndication of sale and leaseback structures within real estate, infrastructure and shipping/offshore. Pareto Securities AB is part of the Pareto Securities group and is headquartered in Oslo, Norway, with more than 400 employees located in offices in Norway, Sweden, Denmark, Finland, United Kingdom, France, Germany, USA, Singapore and Australia.