Consumables

Norske Skog increases liquidity by NOK 250 million

Wednesday 20. November 2013 - 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.