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Mondi secures €750m credit facility extension

14th July 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The maturity date for an existing €750-million revolving credit facility has been successfully extended from 2016 to 2019 after JSE-listed packaging and paper group Mondi signed an amendment and restatement agreement with ten participating banks.

The revised agreement, which also reduced the cost of the funding, included an option to extend the facility for an additional year at both the first and second anniversary of the agreement with each bank’s approval.

“We are delighted with the confidence shown in the Mondi group by having all our relationship banks agree to continue their support for the next five years. This transaction reinforces the financial strength of the group by extending our debt maturity profile in a cost effective manner,” Mondi CFO Andrew King said in a statement.

The group initially secured the five-year facility in 2011 to refinance a €1.55-billion credit facility that was due to mature in June 2012.

The mandated lead arrangers comprised Barclays Bank, BNP Paribas, Commerzbank, Deutsche Bank, DNB Bank, Erste Group Bank, HSBC Bank, Raiffeisen Bank International, The Royal Bank of Scotland and UniCredit Bank Austria.

Edited by Creamer Media Reporter

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