Lemminkäinen has agreed on amended terms of its financial agreement

LEMMINKÄINEN CORPORATION    STOCK EXCHANGE RELEASE    27 MARCH 2015 AT 9:00 A.M.

LEMMINKÄINEN HAS AGREED ON AMENDED TERMS OF ITS FINANCIAL AGREEMENT

Lemminkäinen Corporation has agreed on amending the terms of its EUR 185 million revolving credit facility and extending the maturity by one year. The EUR 185 million revolving credit facility will mature on 27 March 2017. The credit facility is currently completely undrawn. Nordea Bank Finland Plc, Danske Bank A/S, Helsinki branch and Pohjola Bank plc are involved in the credit facility.

As part of the financing negotiations with the lenders in summer 2014, Lemminkäinen committed to strengthen its balance sheet by a total of EUR 100 million by 30 September 2015. By the end of the financial year 2014, the company had strengthened its balance sheet by a total of approximately EUR 50 million through a share issue and divestments of non-core assets and businesses, among other measures. As part of the financing negotiations, the company also agreed not to distribute dividends for the financial year 2014.

It was agreed with the lenders in financing negotiations in March 2015 that Lemminkäinen will commit to strengthen its balance sheet by a total of EUR 60 million instead of the previous EUR 100 million. Furthermore, the company may distribute a maximum of 40 per cent of the Group’s net profit for the financial years 2015 and 2016 as dividends.

“The measures to strengthen the balance sheet and improve our profitability started last spring have yielded results,” says Ilkka Salonen, Lemminkäinen’s CFO. “Our liquidity is also clearly better than last year. In 2015, we will focus on improving our operational efficiency and continue measures to strengthen our capital structure. This way, we will create a solid foundation for strengthening our competitive position in the North European infrastructure market.” 

LEMMINKÄINEN CORPORATION
Corporate Communications

 

ADDITIONAL INFORMATION:
Ilkka Salonen, CFO
Tel. + 358 2071 53304
Ilkka.salonen@lemminkainen.com

Katri Sundström, Head of Investor Relations
Tel. + 358 2071 54813
katri.sundstrom@lemminkainen.com

DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.lemminkainen.com
 

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 5,600 professionals. In 2014, our net sales were about EUR 2.0 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com