EUROPAC IMRPOVES CONDITIONS OF ITS

SYNDICATED LOAN

  • Reduction in interest rate of 20 additional basis points and extension of deadline for debt maturity by two years

  • Following the latest revision of the syndicated loan, signed in December 2016, the company's ordinary finance cost dropped by 27%

  • Europac has also renewed its commercial paper issue programme on the MARF, increasing its maximum amount from 100 to 200 million euros

Madrid, 5 July 2018.- This afternoon the Europac Group signed a novation of its syndicated loan, taken out in July 2015 and revised for the last time in December 2016 for a sum of 260 million euros. The agreement between the company and financial institutions means an additional reduction in the finance cost and an extension to the maturity dates of the loan.

The new conditions specifically mean a reduction in the interest rate of 20 additional basis points and an extension of the debt maturities by two years from 2022 to 2024. In this context, the additional credit line now available to the company came with a lower interest rate of 50 basis points.

It should be remembered that the improved conditions tied to the previous novation of the syndicated loan, signed in December 2016, were applied during the whole of last year. Accordingly, the finance cost in 2017 dropped by 48% to 6 million euros. Without taking into account the extraordinary effects, this reduction would have amounted to 27%.

On another note, the Europac Group renewed its commercial paper issue programme on the Alternative Fixed-Income Market (MARF), increasing its maximum amount from 100 to 200 million euros. The aim of this operation is to continue reducing finance costs and diversify sources of finance.

Strength and flexibility

José Miguel Isidro, Chairman of the Europac Group, highlighted that "these two operations, which, in addition to strengthening and making the company's finance structure more flexible, diversify the sources of credit, reflect the extraordinary financial soundness of the group and the robust management of this matter".

More information

Fernando Vidal

Tel. 91 490 21 60 / 629 123 124fvidal@europacgroup.com

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Europac - Papeles y Cartones de Europa SA published this content on 05 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 July 2018 16:38:02 UTC