Moody's gives Metsa bond B2

Moody's Investors Service said it assigned a definitive B2 (LGD4, 57%) unsecured instrument rating to the upsized €225 million five-year non-call senior unsecured Nordic bond at a 4% fixed-interest rate issued by Metsa Board Corp.

The company's B2 corporate family rating, B2-PD probability of default rating and the positive outlook remain unchanged.

The issuance of a minimum €200 million five-year unsecured bond that was condition precedent to the funding of the Metsa Board's new loan facility, has been met.

Metsa Board will use the net proceeds from the combined debt issuance to repay the existing €350 million term loan maturing on March 31, 2016 and to replace a currently undrawn €100 million revolving credit facility due on May 2, 2015.

With the issuance of the bond and the funding of the loan facility, Metsa Board's short-term liquidity position will have strongly improved including manageable near-term debt maturities, the agency said.

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