Regional Business Information for the West Midlands
SKG launches amendment to further extend debt maturities
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8th February 2012
Smurfit Kappa Group is seeking the consent of its lenders to amend its Senior Credit Facility Agreement.
Within the past 12 months, SKG has materially improved its financial profile and flexibility, by reducing net debt by euro358 million to euro2.75 billion, while maintaining a strong liquidity position and diverse funding sources.
To further strengthen its capital structure the Group is now seeking the consent of its lenders to amend its Senior Credit Facility Agreement.
The proposed amendments will further increase SKG's financial flexibility, providing it with: Extended maturity of its Senior Credit Facility; Increased ability to raise longer-dated capital to refinance a portion of its existing Senior Facilities; Flexibility to efficiently refinance its Senior Subordinated Notes Due 2015. Lenders under Term Loans B and C who agree to extend will be offered a 20% cash prepayment at par to be funded from cash on balance sheet.
A significant number of the Group's major lenders have already confirmed their support for all of the proposed amendments and maturity extension.
At 9:39am:
(LON:SKG) share price was +0.52p at 7.16p
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