Componenta signs one-year extension for the current syndicated loan

Componenta has signed a one-year agreement extension to the current syndicate loan of EUR 164 million. The original due date of the loan was on 28 June 2012. The counter-parties of the syndicated loan are the same financier banks Pohjola, Swedbank, Nordea, Unicredit, RBS, HSH Nordbank and  Danske Bank. During 2012 Componenta will amortize the syndicated loan to more than half of its current amount.

Componenta will strengthen its  balance sheet in 2012 through a share issue of EUR 10-20 million starting on 20 March 2012 and by issuing a hybrid bond of EUR 20 million and by selling off the unit in Manisa, Turkey, that produces aluminium wheel for passenger cars. Through these measures combined with the cash flow from operations in 2012, the Group estimates it can reduce its interest-bearing debt by about one third.

The selling preparations of the Manisa Wheels business unit have proceeded as expected. The investment bank Augusta & Co. was hired to prepare the sale of the unit. The target is to finalize the sale of Manisa Wheels during summer 2012.

Componenta’s intention is to re-finance the syndicate loan by the end of 2012 through a new long term financing, which is estimated to be some EUR 90 million.

Helsinki, 20 March 2012

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723

Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 452 million in 2010 and its share is listed on the NASDAQ OMX Helsinki. The Group employs approx. 4,400 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers who are manufacturers of vehicles, machines and equipment.