Lemminkäinen has agreed on amended terms of its credit facility and continues measures to strenghten the balance sheet
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 21 MAY 2014 AT 10:15 A.M
LEMMINKÄINEN HAS AGREED ON AMENDED TERMS OF ITS CREDIT FACILITY AND CONTINUES MEASURES TO STRENGHTEN THE BALANCE SHEET
Lemminkäinen Corporation agreed on a three-year unsecured syndicated revolving credit facility of EUR 185 million in March 2013. The revolving credit facility includes two financial covenants: equity ratio and net debt to EBITDA. Lemminkäinen informed in its interim report on 30 April 2014 that the terms of the net debt to EBITDA covenant were not met in the first quarter of 2014. The company has agreed on amended terms of its credit facility with the lenders.
Lemminkäinen continues measures to strengthen its balance sheet and to improve its financing position. The company announced on 14 May 2014 the divestment of its technical building services business. The debt and cash free purchase price was EUR 60 million of which Lemminkäinen will record a significant capital gain.
Lemminkäinen will strengthen its balance sheet with approximately EUR 100 million. The company continues the disposal of non-core assets and operations. In addition, the company is planning to carry out an equity issue in autumn 2014 by using the authorisation granted to the Board of Directors by the Annual General Meeting on 9 April 2014.
Furthermore, the company has agreed not to pay any dividends without the consent of the lenders.
Lemminkäinen also intends to issue a bond during 2014.
Currently, the company has committed credit limits amounting to EUR 185 million and overdraft limits amounting to EUR 62 million. Nordea Bank Finland Plc, Danske Bank A/S, Helsinki Branch, Pohjola Bank Plc and Handelsbanken are participating in the facilities.
Ilkka Salonen, Interim CFO
Tel. +358 2071 54524
Katri Sundström, Vice President, Investor Relations
Tel. +358 2071 54813
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in northern Europe and employ about 7,800 professionals. In 2013, our net sales were about EUR 2.2 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com