FINLAND - Glaston Concludes EUR 74 Million Revolving Credit Facility
November 20, 2009
Today, Glaston Corp. signed a EUR 74 million revolving credit facility
agreement with its core banks. This loan will supersede the arrangements
of a corresponding size made earlier with the same banks. The loan
period is two years, with an option of a one-year extension period
subject to agreement between the parties. It is intended to cover
the corporation's general financing requirements and the repayment
of earlier, bilateral arrangements.
According to a company announcement, the agreement includes covenants
and borrower obligations in line with market practices. In addition,
the terms of the agreement set restrictions on dividend payments.
Dividend payment is thereby conditional on Glaston's gearing, which
may not exceed 80 percent before or after any dividend payment.
These restrictions do not apply to statutory dividends.
Pohjola Bank will function as the mandated lead arranger for the
agreement, with Sampo Bank and Nordea as the arrangers.
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