Norske Skog negotiates new Q1 2013 covenants on a revolving credit facility, including halving the size to €70M to reflect its actual backup liquidity needs, is talking with its four banks to possibly reset the covenants for later quarters
OSLO, Norway , March 13, 2013 (press release) – Norske Skog has reached an agreement with its bank syndicate resetting first quarter 2013 covenants related to the revolving credit facility (RCF). The new covenants are a leverage ratio of 5.75:1 and an interest cover ratio of 1.75:1. The size of the RCF was reduced to EUR 70 million, from EUR 140 million, a size more in line with actual back-up liquidity requirements of the group. Norske Skog is working on refinancing the bank facility, and has a continuous dialogue with its four relationship banks regarding possible covenant resets for later quarters.