U.S. Markets close in 2 hrs 14 mins

Norske Skog increases liquidity by NOK 250 million

Norske Skog has signed a loan agreement (securitisation facilty) with SpareBank 1 Gruppen Finans AS. Norske Skog will raise a loan of NOK 250 million in SpareBank 1 Gruppen, secured by accounts receivable in the two Norwegian mills: Norske Skog Skogn AS og Norske Skog Saugbrugs AS. 

- We have now strengthened our long-term financing of the company through this agreement with SpareBank 1 Gruppen Finans AS. We have now sufficient funds to cover debt obligations in 2014, says Sven Ombudstvedt, President and CEO in Norske Skog.

- To further strengthen the group`s financial flexibility, we aim to get similar agreements for the remaining European mills in the group during the first half of 2014, says Sven Ombudstvedt, President and CEO in Norske Skog.

Norske Skog Skogn and Norske Skog Saugbrugs have a combined annual revenue of approximately NOK 4 billion, and outstanding receivables of about NOK 350 million. Under the agreement, Norske Skog will continue to collect receivables from customers. The agreement with Sparebank 1 Gruppen Finans AS is over a minimum of three years without restrictive financial covenants. The interest cost is competitive compared with similar secured financing.

Norske Skog
Communications and Public Affairs

For further information:
Norske Skog media:
Vice President Corporate Communication
Carsten Dybevig
Mob: +47 917 63 117
Norske Skog financial markets: 
Vice President Investor Relations
Tom Rogn
Mob: +47 948 55 659

 
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Norske Skog via Thomson Reuters ONE

HUG#1743790