Approximately €230 million of the term loan B has been drawn and used, together with cash on hand, to redeem in full its existing €230 million floating rate senior secured notes due 2020 (the “Floating Rate Notes”) in accordance with the indenture governing the Floating Rate Notes and to pay related fees and expenses. Paroc has also terminated its existing revolving credit facility. The new revolving credit facility may be used for general corporate purposes of Paroc and its subsidiaries.
Paroc intends to draw the remaining term loan B commitments in May 2017 and use the proceeds to redeem its €196 million 6¼% senior secured notes due 2020 (the “Fixed Rate Notes”), to make a distribution to shareholders and to pay related fees and expenses. The drawing of the remaining term loan B commitments is subject to the satisfaction of customary closing conditions and there can be no assurance that Paroc will redeem the Fixed Rate Notes. Any notices of redemption that Paroc submits with respect to the Fixed Rate Notes will be conditional upon the drawing of the required amounts to fund the redemption of the Fixed Rate Notes.
The annual interest rate on borrowings under the New Senior Credit Facilities will be calculated based on EURIBOR, plus a margin of 4.25% per annum, in the case of the term loan B facility, and 4.00% per annum in the case of the revolving credit facility. The revolving credit facility matures 6.5 years after the closing date and the term loan B facility matures seven years after the closing date. The New Senior Credit Facilities will be secured on a pari passu basis with the collateral securing the Fixed Rate Notes.
Helsinki, 29 March 2017
For further information please contact:
Joakim Flinck, Director Group Finance and Head of Investor Relations
Tel: +358 40 556 4757 or email: investor.relations@paroc.com
