Outokumpu reduced net debt with the proceeds of the directed share issue
Outokumpu Oyj
Stock exchange release
June 1, 2021 at 9.30 am EEST
Outokumpu reduced net debt with the proceeds of the directed share issue
Outokumpu has prepaid loans from financial institutions by 210 million euros with the proceeds of the directed share issue, completed on May 10, 2021. Deleveraging and strengthening the balance sheet are key targets of the company strategy launched in November 2020. On March 31, 2021, Outokumpu’s Annual General Meeting authorized the Board of Directors to decide upon a directed share issue.
Says CFO Pia Aaltonen-Forsell: “We completed the directed share issue to strengthen our balance sheet and to reduce our net debt. Reducing net debt, prepaying one of the more expensive loans and strengthening our credit rating significantly decrease Outokumpu’s financial costs. This benefits all our shareholders.”
“Our determined work to reduce net debt strengthens our position in the financial market. It became clear immediately after the directed share issue, when the rating company Moody’s decided to improve Outokumpu’s ratings as well as the outlook of the ratings. With the new equity and improved credit rating, we will be able to decrease Outokumpu’s interest costs on an annual run-rate by 18 million euros,” notes Pia Aaltonen-Forsell.
At the end of the first quarter in 2021, Outokumpu’s net debt was 1,073 million euros and gearing 44%. The net debt to adjusted EBITDA ratio was 3.3. With the proceeds of the directed share issue, had the directed share issue been completed in the first quarter, Outokumpu’s Q1 net debt would have decreased to 868 million euros, gearing to 33% and the net debt to EBITDA ratio would have been 2.7.
In the first phase of its strategy during 2021–2022, Outokumpu’s interim target has been to improve the net debt to EBITDA ratio to below 3.0. Going forward, Outokumpu continues to deleverage its balance sheet.
For more information:
Media: Outokumpu media desk, tel. +358 9 421 3840
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Outokumpu Oyj
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 10,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com