Mar 06, 2014. /Lesprom Network/. Metsä Board Corporation, part of Metsä Group, will issue a Euro 225 million senior unsecured bond mainly to institutional investors. The bond matures on 13 March 2019, and it carries a fixed coupon interest rate of 4,000 per cent per annum, as the company said in the press release received by Lesprom Network.

The bond was more than 10 times oversubscribed. Standard & Poor’s has assigned the bond a rating of B+ and Moody’s a rating of B2, which are both in line with the company’s corporate credit ratings. An application will be made to list the bond on NASDAQ OMX Helsinki. Nordea Markets acted as the coordinator for the bond issue. Other lead managers are Danske Bank, Pohjola Markets, SEB and Swedbank.

Metsä Board has also signed an agreement on a new unsecured syndicated credit facility. The new facility consists of a Euro 150 million term loan facility and a Euro 100 million revolving credit facility both maturing in March 2018. Nordea acted as coordinator of the facilities. Other arrangers were Danske Bank, DNB Pohjola, SEB and Swedbank.

The proceeds of the new loan arrangements will be mainly used to prepay the existing Euro 350 million secured term loan maturing in March 2016. The new revolving credit facility will replace the undrawn Euro 100 million secured revolving credit facility maturing in May 2015

Metsä Board is Europe’s leading producer of fresh forest fibre cartonboards, the world’s leading manufacturer of coated white-top kraftliners, and a major paper supplier.