Cramo refinances long term debt
Finnish based international rental company Cramo has refinanced €375 million of its long-term debt.
The company has signed a new syndicated loan to refinance its existing long-term loan facilities. The existing facility was agreed in 2007 and was due to mature in January 2013, while the new unsecured syndicated loan is for four years with a one year extension option.
The loan consists of a €175 million term loan and a €200 million revolving credit facility. The loan has two financial covenants covering the net debt to EBITDA ratio and gearing ratio.
Five banks participated as mandated lead arrangers in the transaction: Pohjola Bank, Nordea, Svenska Handelsbanken, DnB NOR and SEB.
Cramo’s chief executive Martti Ala-Härkönen said: "The refinancing of Cramo's long-term syndicate loan agreement is important for the company from several perspectives. The new loan arrangement improves Cramo's liquidity and reduces the group's interest expenses markedly. Further, the new loan arrangement provides additional flexibility for Cramo to pursue growth through acquisitions."