Europe’s largest containerboard maker Smurfit Kappa today said that one of its wholly-owned subsidiaries plans to issue debt in the form of senior secured notes due 2017.
The net proceeds of the new notes will be used to repay a portion of the outstanding indebtedness under its senior credit facility, the company added.
The only detail given by the firm was that would be an 8-year debt debt issue, which would help to pay down bank debt and extend the maturity profile of its debt.
In July lenders to Smurfit Kappa agreed to extend their revolving credit facilities on loans totalling €600 million.
The Dublin-based firm said lenders providing more than 98 per cent of its senior credit facility would allow it to raise longer-dated financing to refinance a portion of its existing bank facilities.
Lenders holding 75 per cent of the group’s revolving credit facility (RFC) elected to extend commitments by one year. The €600 million RFC maturing in December 2012 has been converted into two tranches totalling €525 million, of which €152 million matures in December 2012 and €373 million in December 2013.
