Brief: Cloetta enters into new loan agreement
25/07/2016 07:00
July 25 (Reuters) - Cloetta Ab CLOEb.ST
* Cloetta enters into new loan agreement and intends to
redeem bonds
* Says has entered into a new term and revolving facilities
agreement with a group of four banks, amounting in total to the
equivalent of SEK 3,700 million which will be partially used to
refinance its existing bank financing
* In the third quarter of 2016 Cloetta is expected to
recognize one-off expenses in net financial items of
approximately SEK 60m relating to the termination of
the old credit facilities, the establishment of the Facilities
Agreement and the redemption of the Senior Secured Notes
* The Facilities Agreement, along with the redemption of the
Senior Secured Notes, is expected, excluding one-off expenses,
to reduce the group's net financial items by approximately SEK
140 million over a five year period, whereof SEK 50 million in
2017
* The new financing package includes a bridge loan of SEK
1,000 million which Cloetta intends to use to redeem its Senior
Secured Notes issued in September 2013
* The Facilities Agreement comprises of a term loan of EUR
175 million, a revolving credit facility of EUR 120 million and
a bridge loan of SEK 1,000 million
* The term loan has a tenor of three years, with the
possibility of an extension of up to two years (subject to
lender approval). The revolving facility has a
tenor of five years, and the bridge loan has a tenor of one year
with the possibility of an extension for a further year at the
discretion of Cloetta
* The new Facilities Agreement is unsecured and accordingly
the remaining security afforded to the holders of the Senior
Secured Notes will be released in connection with the
refinancing of its existing bank financing
Source text for Eikon: ID:
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(Reporting by Stockholm Newsroom)
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