Outokumpu prepays €100 million of revolver, extends remaining amount

By Tali Rackner

Norfolk, Va., Dec. 14 – Outokumpu Oyj prepaid and canceled €100 million of its €900 million revolving credit facility and signed an amendment and extension agreement relating to the remaining €800 million, according to a press release.

The amended facility includes a new €655 million tranche that matures in February 2019 and the remaining €45 million will mature in February 2017.

In addition, the company canceled and prepaid some €240 million of its bilateral loans, including pension loans, and extended two bilateral facilities by a total amount of €120 million to February 2019.

“We are taking decisive measures to reduce debt levels and to strengthen Outokumpu’s financial position,” CFO and interim CEO Reinhard Florey said in the release.

“The recent divestment of the Shanghai Krupp Stainless shares demonstrates our strong commitment to this target. The transaction enabled significant debt reduction and extension of the credit facilities. Outokumpu’s debt maturity profile becomes more balanced and annual financing costs will decrease by some €20 million. We are very pleased with the successful extension of the credit facilities and strong support by the core banking group.”

Outokumpu is an Espoo, Finland-based stainless steel company.

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