Bergs Timber enters into a new loan agreement. The new credit facilities in the total amount of SEK 750 million ($9 million) have a three-year term and include three term loans and a revolving loan facility of SEK 250 million ($26.3 million). The term loans shall be quarterly amortised beginning as of September 30, 2019, the company says in the press release received by Lesprom Network.
The terms for the new credit facilities are in accordance with an offer previously received from Danske Bank and SEK. The loan agreement contains customary covenants that, among other things, limit the decision-making for Bergs Timber AB (publ) regarding pledging of assets, borrowing or granting security, disposal of assets and merging or consolidating business with other companies. In addition, the agreement stipulates that yearly dividends shall not exceed 40% of previous year’s net profit.
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.