Smurfit Kappa GrpPLC Statement re successful completion of EUR1.375 billion Senior Credit Facility Re-financing
July 25 2013 - 1:00AM
UK Regulatory
TIDMSKG
Smurfit Kappa Group announces successful completion ofEUR1.375
billion Senior Credit Facility Re-financing
Re-positions the Group's debt profile from leveraged to
corporate
Reduces interest costs, extends debt maturity and earnings
accretive
SKG:IDSKG:LN
Smurfit Kappa Group plc ('SKG' or the "Group") is pleased to
announce that it has successfully completed the refinancing of its
existing senior secured credit facility with a new 5 year unsecured
relationship bank facility. In connection with the refinancing, the
collateral securing the obligations under the Group's various
outstanding senior notes and debentures has also been released and
the senior notes and debentures are therefore now unsecured. The
transition of the capital structure from secured to unsecured
reflects the re-positioning of SKG's credit profile from leveraged
to corporate.
The new EUR1,375 million 5 year facility comprises a EUR750
million term loan with a margin of 2.25% and a EUR625 million
revolving credit facility with a margin of 2.00%, reduced from
margins of 3.75% and 3.25% respectively. The Group expects cash
interest savings from the refinancing will be approximately EUR13
million per annum and the transaction will be immediately earnings
accretive. There will be a one-off exceptional cost of
approximately EUR16 million arising from the accelerated
amortisation of unamortised deferred debt issue costs related to
the existing facility.
The transaction was initially launched at EUR1,100 million and
was upsized to EUR1,375 million following a substantial
oversubscription. A total of 22 banks, all of whom are SKG
relationship banks, have committed to the new facility. Citi,
Crédit Agricole Corporate & Investment Bank, Danske Bank A/S,
HSBC Bank plc, JPMorgan Chase Bank N.A. and The Royal Bank of
Scotland plc / Ulster Bank Ireland Limited acted as Bookrunners and
Mandated Lead Arrangers. The Royal Bank of Scotland plc was sole
Co-ordinator.
In addition to the new senior facility, SKG has put in place a 5
year trade receivables securitisation programme of up to EUR175
million utilising the Group's receivables in Austria, Belgium,
Italy and the Netherlands. The programme, which has been arranged
by Rabobank and carries a margin of 1.70%, will complement the
Group's existing EUR250 million securitisation programme.
Ian Curley, Smurfit Kappa Group CFO, commented: "These
transactions re-position SKG's debt portfolio from a secured
leveraged structure post take private in 2002 to an unsecured
corporate profile. The new facilities will lower SKG's overall cost
of capital, materially reduce debt servicing costs, enhance
earnings and provide greater financial flexibility, including the
potential to refinance part of its more expensive bond debt at the
appropriate time."
Smurfit Kappa
Smurfit Kappa is one of the leading producers of paper-based
packaging in the world, with around 41,000 employees in
approximately 350 production sites across 32 countries and with a
sales revenue of EUR7.3 bn in 2012.
Innovation, service and pro-activity towards customers, using
sustainable resources, is our primary focus. This focus is enhanced
through us being an integrated producer, with our packaging plants
sourcing the major part of their raw materials from our own paper
mills. We are the European leader in paper-based packaging,
operating in 21 countries selling products including corrugated,
containerboard, bag-in-box, solidboard and solidboard packaging. We
have a growing base in Eastern Europe in many of these product
areas. We also have a key position in other product/market segments
including graphicboard, MG paper and sack paper.
We are the only large scale pan regional player in the Americas,
operating in 11 countries in total in North, Central and South
America.
ENDS
For further information contact:
Seamus Murphy FTI Consulting
Smurfit Kappa Group
Tel: +353 1 202 71 80 Tel: +353 1 663 36 86
E-mail: ir@smurfitkappa.com E-mail: smurfitkappa@fticonsulting.com
This information is provided by Business Wire
Smurfit Kappa (LSE:SKG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Smurfit Kappa (LSE:SKG)
Historical Stock Chart
From Jul 2023 to Jul 2024