22.06.2014

Cramo refinances debt

Finnish international rental group Cramo has signed a new €375 million long-term club loan to refinance its existing long-term loan facilities.

The existing facility was agreed in 2010 and was due to mature in December 2015. The new unsecured syndicated loan matures at the end of 2019 (Jan 1 2020) with a one year extension option. The loan consists of a €125 million term loan and a €250 million revolving credit facility. The loan has one financial covenant: the Net Debt to EBITDA ratio.

Five banks participated in the transaction as mandated lead arrangers: DNB, Nordea, Pohjola Bank, SEB and Swedbank. Pohjola Bank acted as the coordinator of the transaction on behalf of Cramo.

Cramo ‘s chief financial officer 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 the maturity profile of Cramo’s debt portfolio and reduces the group’s interest expenses. Furthermore, the new loan arrangement, with one financial covenant instead of the previous two, provides also additional flexibility for the group to pursue a growth strategy both organically and through acquisitions”.