Sanitec plans for a new financing structure – reducing costs and creating more flexibility
ET | Source:Sanitec
Sanitec has today entered into a EUR 275 million Multicurrency Term Loan and a
Revolving Credit Facility. The company will shortly initiate a process to redeem
the existing Senior Secured Floating Rate Notes with the amount of EUR 250
million as well as to terminate the Senior Secured Revolving Credit Facility of
EUR 50 million. The new financing structure will reduce Sanitec’s costs, and
create more flexibility for handling cash and liquidity.
When implemented, the new financing structure will reduce financial expenses by
up to EUR 10 million per year which equals an increase in the earnings per share
with approximately EUR 0.10, ceteris paribus.
The redemption price of the Senior Secured Floating Rate Notes is 101% of the
nominal value of EUR 250 million (with an interest of 4.75% over three months
euribor and are due in 2018). In connection with the redemption Sanitec will
write off a capitalised fee of approximately EUR 7.5 million. In total the Q2
financial result will be affected by approximately EUR 10 million in one-off
financial expenses. All in all the net effect on earnings per share for 2014
will be about EUR -0.05.
The current financing will be replaced by the EUR 275 million Multicurrency Term
Loan and a Revolving Credit Facility, provided by Danske Bank, DNB Bank and
Nordea. The maturity of the agreement is at least three years.
“The new structure will reduce our cost for financing and create more
flexibility, and will not negatively affect the distribution capability to the
shareholders”, says Fredrik Cappelen, Chairman of the Board in Sanitec.
Sanitec aims to have the new structure in place end of June 2014.
For additional information, please contact:
Head of Investor Relations
mob. 46 76 855 7836
Head of Corporate Communications
tel. 358 10 662 5426
About Sanitec – “Home of the Bathroom”
Sanitec is the leader in bathroom ceramics in Europe. We have a unique portfolio
of some of the most well-known brands with deep roots in the European fixtures
markets, strategically positioned to address local markets. We care passionately
about people’s needs when it comes to complete bathroom concepts, providing
products that stand for guaranteed quality, high level of innovation and
attractive design. Stable relationships with key stakeholders in the value chain
and our unique brand strengths foster our leading position as well as the
loyalty and trust amongst our customers, our network of installers and the end
users of our products.
Sanitec operates an integrated European group with an unparalleled local
presence to provide the best value when it comes to bathroom products. In 2013
net sales amounted to EUR 702 million. Our production network includes 18
production facilities throughout Europe and currently Sanitec employs
approximately 6,200 people. Our head office is located in Helsinki, Finland. The
shares in Sanitec Corporation are traded on NASDAQ OMX Stockholm under the
For more information about Sanitec, please visit www.sanitec.com.
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