Norske Skog shall operate by these guidelines to have financial flexibility to fund short and long-term capital requirements and to maintain a capital structure that suits the group’s strategy.
- Norske Skog shall aim to have access to a diversified range of capital sources.
- Norske Skog shall aim to have a leverage ratio less than 2x. Leverage ratio is defined as net interest bearing debt to last twelve months EBITDA.
- Norske Skog shall aim to keep the maturity profile on it’s main financing arrangements spread out to reduce refinancing risk. Refinancing of major debt obligations shall be initiated well in advance of respective maturities.
Norske Skog AS has available a EUR 31 million revolving credit facility for working capital purposes. The facility matures in March 2026. In addition, subsidiaries have various smaller credit facilities outstanding.
Norske Skog has a EUR 150 million bond outstanding. The bond matures in March 2026.
|Issuer||Norske Skog ASA|
|Prospectus||Norske Skog ASA - Bond prospectus Security Note Document|
|Amount||EUR 150 million|
|Coupon rate||3m EURIBOR + 5.5 % p.a.|
|Issue date||2 March 2021|
|Maturity date||2 March 2026|
The financial covenants set out below apply for the EUR 31 million revolving credit facility and the EUR 150 million bond, on a group consolidated basis.
- Free and available cash and cash equivalents shall exceed NOK 100 million.
- Interest coverage ratio, as measured by the ratio of EBITDA to net interest costs, of minimum 2.0:1.
- Equity ratio, as measured by the ratio of book equity to total assets, in excess of 25%.