Smurfit Kappa seeks lender consent to amend, extend maturity of its Senior Credit Facility to further strengthen capital structure
February 8, 2012
– Smurfit Kappa Group plc (“SKG” or the “Group”), one of the world’s largest integrated manufacturers of paper-based packaging products, with operations in Europe and Latin America, today announced that it is seeking the consent of its lenders to amend its Senior Credit Facility Agreement.
As reported in its 2011 fourth quarter results announcement released today, SKG continues to deliver a strong financial performance. Within the past 12 months, SKG has materially improved its financial profile and flexibility, by reducing net debt by €358 million to €2.75 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:
A significant number of the Group’s top lenders have already confirmed their support for all of the proposed amendments and maturity extension.
Smurfit Kappa Group’s Chief Financial Officer, Mr Ian Curley, commented: “In the last 12 months, our strong cash flow generation delivered net debt reduction of €358 million to €2.75 billion, exceeding our stated net debt reduction target. Our net debt to EBITDA ratio reduced to 2.7x at the end of 2011, and our clear objective is to maintain that ratio below 3.0x through the cycle. The proposed amendments to our Senior Credit Facility form part of an ongoing process of efficient capital structure management, and will provide us with an extended debt maturity profile and significantly enhanced financial flexibility.”
Amendments to Senior Credit Facility Agreement | Summary Details
The principal requested amendments to SKG’s Senior Credit Facility Agreement (“SCF”) are:
A copy of SKG’s letter requesting the consent of its lenders to the proposed amendments to its Senior Credit Facility Agreement is available on the SKG website at www.smurfitkappa.com/investors.
Deutsche Bank, London, is Facility Agent.
About Smurfit Kappa Group
Smurfit Kappa Group is a world leader in paper-based packaging with operations in Europe and Latin America. Smurfit Kappa Group operates in 21 countries in Europe and is the European leader in containerboard, solidboard, corrugated and solidboard packaging and has a key position in several other packaging and paper segments. Smurfit Kappa Group also has a growing base in Eastern Europe and operates in 9 countries in Latin America where it is the only pan-regional operator.