Kvaerner reaches agreement with banks on refinancing

New York, Sept. 26 - Anglo-Norwegian engineering and construction company Kvaerner said it reached an agreement with its main banks on structuring short-term and long-term financing. Provision of short-term liquidity was given first priority, the company added.

To that end, the NOK800 million short-term loan taken out on Sept. 19 will be extended to Dec. 31, 2001.

The banks will work to replace the existing short-term loan facilities with a three-year loan.

Kvaerner said the banks or working on the basis that it will raise at least NOK1 billion in a right issue although the company said it intends to raise NOK2 billion, which it intends to structure, at least in part, as a three-year convertible bond.

Kvaerner said DnB, Folketrygdfondet and Siem Industries, among others, have agreed to participate in the syndicate for the rights issue, subject to refinancing of the company's $450 million loan facility and a full underwriting of NOK1 billion in the rights issue. So far the company has reached NOK500 million.

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.