Business News
Metso obtained EUR 200 million of long-term funding
Wednesday 10. June 2009 - Metso Corporation has made a placement of 5-year bonds to a group of European investors under Metsos EMTN program. In order to accommodate investor preferences the overall issue size is EUR 300 million.
Out of this total, and considering Metsos actual funding needs, its 100% owned subsidiary Metso Capital Ltd has subscribed EUR 100 million for potential resale after an 18-month lock-up period. The notes carry a fixed interest coupon of 7.25%. Issue date is June 10, 2009. Application is being made to list these notes on the Luxemburg Stock Exchange.
The funding is primarily to refinance Metsos existing debt and to extend maturity structure. Metso has done other smaller 4-5 year debt transactions earlier this year amounting to EUR 165 million. New funding altogether exceeds the repayments of long-term debt falling due during the two and a half year period from the beginning of 2009.