Trelleborg improves its financial debt maturity term structure through three new long term revolving credit facilities totaling EUR 291 M

12/28/2009 2:30 AM EST

Trelleborg AB has signed three revolving credit facilities in a total amount of EUR 291 M (corresponding to some SEK 3,000 M) with four first-rate commercial banks. The facilities are partially guaranteed by the Swedish Export Guarantee Authority. A portion of EUR 241 M of the facilities has a tenor of 7 years, whilst the remaining portion amounting to EUR 50 M has a tenor of 5 years.

“Through the establishment of these new credit facilities we have succeeded in terming out a substantial part of our existing gross debt maturities” says Bo Jacobsson, Trelleborg’s CFO.
“Accordingly, we have already now significantly reduced the amount we will need to refinance when our existing syndicated loan, with maturity 2012, eventually needs to be replaced.”

The amount borrowed by Trelleborg under these fully committed credit facilities can vary over time as determined by Trelleborg. Trelleborg is free to reduce the amount of the facilities at any time or to cancel them altogether. Trelleborg does not anticipate drawing under the facilities before a refinancing of the existing syndicated loan facility with maturity 2012. The additional costs for the new facilities will therefore not have a material effect on the Group´s financial net for the next few years.