Sanitec completes debt reconstruction based on equity injection

By Caroline Salls

Pittsburgh, July 9 - Sanitec Corp., its senior lender consortium and EQT Partners have completed the reconstruction of Sanitec's syndicated financial debt under an agreement reached in April, according to a company news release.

"This allows us to put all our efforts toward promoting Sanitec's business and strengthen our market position further," president and chief executive officer Bengt Pihl said in the release.

Under the restructuring, EQT Fund IV will inject €115 million in new equity and will remain a Sanitec shareholder with 77.5% equity ownership.

In addition, the company's €969 million in debt will be reduced to €300 million in exchange for a 22.5% equity stake.

Sanitec said the equity injection will primarily be used to continue to invest in a comprehensive operational improvement of the business.

"With the new financial structure in place, we have the muscles to meet the needs for flexibility and cost efficiency in every link of the production and distribution chain," Pihl said in the release.

EQT Partners senior partner Jan Stahlberg said in the release, "EQT will continue to support the company going forward and is convinced that this new capital structure will provide Sanitec with a platform for growth."

Sanitec is a Helsinki, Finland-based manufacturer and marketer of bathroom accessories and equipment.

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