Outokumpu signs amendment and extension of its syndicated revolving credit facility and has agreed partial security release with key lenders
Outokumpu Oyj
Press release
December 22, 2017 at 3.00 pm EET
Outokumpu Oyj has today signed an amendment and extension of its committed syndicated revolving credit facility. The restated facility of EUR 650 million has its maturity in May 2021 with an option to extend maturity by one year, subject to an approval by the lenders. The facility will be used for general corporate purposes. The restated facility agreement includes one financial covenant based on gearing. In connection with the amendment and extension of the syndicated facility Outokumpu has cancelled a bilateral credit facility of EUR 30 million, which had its maturity on February 2019.
Outokumpu has agreed with key lenders a partial security release, where Outokumpu Stainless Ltd, Outokumpu Stainless Holdings Ltd., Outokumpu Holding Italia SpA, Outokumpu Treasury Belgium NV and Orijärvi Oy, will be released from obligations to guarantee Outokumpu Oyj’s debt. Furthermore, pledges on real estate in Sweden and in Germany, as well as a number of share pledges will be released. The security package continues to include most of the Group’s key assets, such as the stainless steel and ferrochrome facilities in Tornio, Finland and the stainless steel facility in Calvert, the US. The security package will cover the restated facility, certain other bank loans and the notes due June 2021. The restated facility is expected to be effective in January 2018, once conditions precedent have been fulfilled.
Says Christoph de la Camp, CFO of Outokumpu: “We are very pleased with the refinancing and strong support by our core banking group. The extension of maturity to May 2021 and the improvement of certain commercial and other terms support our aims to maintain strong liquidity and to reduce finance expenses.”
Danske Bank, Nordea and SEB coordinated the amendment process. Additional existing lenders are BNP Paribas, Crédit Agricole Corporate and Investment Bank, Handelsbanken, OP and Swedbank. Citi joined the facility as a new lender. Nordea is the facility agent and documentation agent.
For more information:
Investors: Tommi Järvenpää, tel. +358 9 421 3466, mobile +358 40 576 0288
Media: Reeta Kaukiainen, tel. +358 50 522 0924
Outokumpu Group
Outokumpu is the global leader in stainless steel. We aim to be the best value creator in stainless by 2020, through our competitive edge of customer orientation and efficiency. 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 10,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed on Nasdaq Helsinki. www.outokumpu.com outokumpu.com/stainless-news choosestainless.outokumpu.com