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Munksjö Oyj signs a new financing agreement to reduce financing costs and extend maturity

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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.



 

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