Nov 19, 2013. /Lesprom Network/. Stora Enso has signed a new Euro 700 million committed credit facility agreement with a syndicate of 14 banks to refinance its existing Euro 700 million facility. The new facility matures in January 2017 and will be used as a backup for general corporate purposes. Stora Enso has two one-year extension options, subject to banks’ acceptance. If both of the options are exercised, the maturity date of the facility will be January 2019, as the company said in the press release received by Lesprom Network.

The margin is based on a ratings grid, and at the current ratings of BB/Ba2 the margin is 1.40% p.a. over Euribor. The loan has no financial covenants.

Mandated Lead Arrangers and Bookrunners for the transaction are Crédit Agricole Corporate and Investment Bank, Pohjola Bank plc and SEB.

Mandated Lead Arrangers are Barclays, BNP Paribas Corporate & Investment Banking, Citi, Deutsche Bank, DNB Bank ASA, Goldman Sachs Bank USA, HSBC Bank plc, JP Morgan, Nordea, Royal Bank of Scotland and Standard Chartered.

“We are pleased with the continued support and commitment of our relationship banks. The rationale for the refinancing was to extend the maturity of the facility and benefit from market conditions to improve the terms of the facility,” says Stora Enso Acting CFO Jyrki Tammivuori.

Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry.