Metsä Board Corporation will issue EUR 225 million bond and refinance its syndicated credit facility

Metsä Board Corporation Press Release on 6 March 2014 at 17:30 pm EET

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Metsä Board Corporation, part of Metsä Group, will issue a EUR 225 million senior unsecured bond mainly to institutional investors. The bond matures on 13 March 2019, and it carries a fixed coupon interest rate of 4,000 per cent per annum.

The bond was more than 10 times oversubscribed. Standard & Poor’s has assigned the bond a rating of B+ and Moody’s a rating of B2, which are both in line with the company’s corporate credit ratings. An application will be made to list the bond on NASDAQ OMX Helsinki. Nordea Markets acted as the coordinator for the bond issue. Other lead managers are Danske Bank, Pohjola Markets, SEB and Swedbank.

Metsä Board has also signed an agreement on a new unsecured syndicated credit facility. The new facility consists of a EUR 150 million term loan facility and a EUR 100 million revolving credit facility both maturing in March 2018. Nordea acted as coordinator of the facilities. Other arrangers were Danske Bank, DNB Pohjola, SEB and Swedbank.

The proceeds of the new loan arrangements will be mainly used to prepay the existing EUR 350 million secured term loan maturing in March 2016. The new revolving credit facility will replace the undrawn EUR 100 million secured revolving credit facility maturing in May 2015.

METSÄ BOARD CORPORATION

For further information, please contact:
Markus Holm, CFO, tel. +358 (0)10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 (0) 10 465 4335