Sanitec to redeem €250 million floaters at 101 with loan proceeds

By Susanna Moon

Chicago, May 13 - Sanitec said it plans to redeem its €250 million of senior secured floating-rate notes due 2018 with proceeds of a new credit facility.

The redemption price will be 101% of par.

Interest on the floaters is Euribor plus 475 basis points.

The company obtained a €275 million multicurrency term loan and a revolving credit facility, with proceeds to be used to redeem the floaters as well as to terminate the company's €50 million senior secured revolving credit facility, according to a press release.

The new financing structure will reduce Sanitec's costs and create more flexibility for handling cash and liquidity, the release said.

The current financing will be replaced by the €275 million multicurrency term loan and a revolving credit facility provided by Danske Bank, DNB Bank and Nordea. The maturity of the agreement is at least three years.

The new financing structure will reduce financial expenses by up to €10 million per year.

"The new structure will reduce our cost for financing and create more flexibility and will not negatively affect the distribution capability to the shareholders," Fredrik Cappelen, chairman of the board in Sanitec, said in the press release.

The company is based in Helsinki.

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