Smurfit Kappa secures new €1.35bn revolving credit facility
Corrugated packaging group Smurfit Kappa has signed an unsecured €1.35bn revolving credit facility with 21 of its existing relationship banks.
The facility, which has an initial five-year term, can be extended up to a maximum of seven years at the company's request, subject to bank consent. The new facility will refinance Smurfit's existing senior credit facility which matures in March next year.
The company said it further streamlines its capital structure by facilitating the concurrent release of substantially all of its subsidiary guarantees across all of its senior debt funding arrangements including its senior notes, consistent with typical large corporates of similar scale and credit profile.
Group chief financial officer Ken Bowles said: "We are very pleased to have arranged this facility which reflects the continuing strong support of our relationship banks for the group and our strategic direction.
"This transaction is a continuation of our proactive financing strategy to reduce the cost and extend the term of our debt facilities while increasing the flexibility of our capital structure."
At 1515 GMT, the shares were up 2.2% to 2,242p.