Bergs enter into a new loan agreement and secures financing for its strategic focus
Bergs Timber AB (publ) has entered into an agreement with Danske Bank A/S, Denmark, Sweden Branch (“Danske Bank”) and Skandinaviska Enskilda Banken AB (publ) (“SEB”) as lenders regarding, among other things, refinancing of the major part of the Group’s existing loans.
The new credit facilities in the total amount of SEK 650 million have a three-year term and include one term loan of SEK 250 million and a revolving loan facility of SEK 400 million.
The loan agreement contains customary covenants that, among other things, limit the decision-making for Bergs Timber AB (publ) regarding pledging of assets, borrowing or granting guarantees, disposal of assets, acquisitions and merging or consolidating business with other companies. In addition, the loan agreement stipulates that yearly dividends shall not exceed 40 per cent of previous year’s net profit. Unlike the Group’s existing loans, the new loan agreement is unsecured and entails improved terms for the Group.
For further information regarding this press release, contact:
Peter Nilsson, President and CEO, +46 (0)70 315 09 27 or Anders Marklund, CFO, +46 (0)70 284 47 96.
The information is such that Bergs Timber AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 28 January 2022 at 3:00 pm CEST.
An international wood products Group
The Bergs Group consists of independent subsidiaries, with clear responsibilities for results, that develop, produce and market processed wood for various applications.
With years of experience in wood and a great deal of competence in processing, Bergs promotes building a sustainable society based on renewable raw materials from sustainably cultivated forests in the Baltic Sea region.
Operations are conducted in Sweden, Estonia, Latvia and the UK, and the Group’s products are sold in some 20 countries. The largest markets consist of Scandinavia, the Baltic countries, the UK and France. The head office and Group management are located in Sweden.
The company’s share has been listed on Nasdaq Stockholm since 1984.