Outokumpu gets commitments for new €900 million revolving facility

By Jennifer Chiou

New York, Jan. 27 - Outokumpu Oyj announced that it has received commitments for a new €900 million revolving credit facility with BNP Paribas, Credit Agricole Corporate and Investment Bank, Danske Bank, Svenska Handelsbanken, J.P. Morgan, Nordea, Pohjola Bank, Royal Bank of Scotland, Skandinaviska Enskilda Banken and Swedbank as lead arrangers and lenders.

The new revolver matures in February 2017 and will replace the like-sized facility that was to mature in June 2015.

According to a press release, the facility is conditioned on, among other things, the closing of the divestiture of the Acciai Speciali Terni and Outokumpu VDM units to ThyssenKrupp.

Closing is expected in February.

The loan will include financial covenants on liquidity.

Outokumpu said it has also made progress in extending and amending its roughly €600 million bilateral loan portfolio and has obtained the required consents from most lenders to extend the loan until February 2017.

The release noted that Outokumpu and ThyssenKrupp have also agreed to amend and extend the outstanding €250 million credit facility granted by ThyssenKrupp. This facility will be settled at the closing of the sale of the Terni and VDM units.

In addition, some lenders of Outokumpu have committed to a new €500 million liquidity facility due 2017. Documentation is expected to be finalized in February.

The company plans to pledge some of its subsidiary shares and other assets as security.

Based in Espoo, Finland, Outokumpu produces stainless steel.

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