Lenders to packaging firm Smurfit Kappa have agreed to extend their revolving credit facilities on loans totalling €600 million.
The Dublin-based company said today that lenders providing more than 98 per cent of its senior credit facility has agreed to allow Smurfit to raise longer dated financing to refinance a portion of its existing bank facilities .
In addition, lenders holding 75 per cent of the group's revolving credit facility elected to extend their commitments by one year. The original €600 million revolving credit facility (RFC) maturing in December 2012 has now been converted into two tranches totalling €525 million of which €152 million matures in December 2012 and €373 million in December 2013.
"We are pleased to have completed the amendments to our Senior Credit Facility within the expected timeframe and costs. This initiative forms part of an ongoing process of effective capital management and further strengthens our balance sheet in light of the ongoing uncertainty in the global economic environment," said Smurfit's chief executive Ian Curley in a statement.