Sanitec has today entered into a EUR 275 million Multicurrency Term Loan and a Revolving Credit Facility. The company will shortly initiate a process to redeem the existing Senior Secured Floating Rate Notes with the amount of EUR 250 million as well as to terminate the Senior Secured Revolving Credit Facility of EUR 50 million. The new financing structure will reduce Sanitec's costs, and create more flexibility for handling cash and liquidity.

When implemented, the new financing structure will reduce financial expenses by up to EUR 10 million per year which equals an increase in the earnings per share with approximately EUR 0.10, ceteris paribus.

The redemption price of the Senior Secured Floating Rate Notes is 101% of the nominal value of EUR 250 million (with an interest of 4.75% over three months euribor and are due in 2018). In connection with the redemption Sanitec will write off a capitalised fee of approximately EUR 7.5 million. In total the Q2 financial result will be affected by approximately EUR 10 million in one-off financial expenses. All in all the net effect on earnings per share for 2014 will be about EUR -0.05.

The current financing will be replaced by the EUR 275 million Multicurrency Term Loan and a Revolving Credit Facility, provided by Danske Bank, DNB Bank and Nordea. The maturity of the agreement is at least three years.

"The new structure will reduce our cost for financing and create more flexibility, and will not negatively affect the distribution capability to the shareholders", says Fredrik Cappelen, Chairman of the Board in Sanitec.

Sanitec aims to have the new structure in place end of June 2014.

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