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[May 2009]
Sanitec Agrees Terms for Restructuring with Steering Committee of Senior Lenders
Sanitec said it was pleased to announce that it has agreed with a steering committee of its senior lenders the terms of a proposal to restructure the syndicated financial liabilities of the company. The agreement of this restructuring proposal is an important step in concluding a successful restructuring of Sanitec’s balance sheet. The proposal is subject to the formal credit committee approval and the consent of two-thirds of Sanitec’s senior lenders.
The terms of the proposal would see the company’s existing €880 million senior and €135 million second lien facilities put in place in April 2005 reduced to €300 million. It would also include a new €115 million equity injection by EQT and the provision of a new €50 million revolving credit facility by existing senior lenders. The €115 million equity injection would principally be used to invest in a comprehensive operational restructuring of the business. In return for reducing their debt in the company, the lenders will receive a stake in the equity of Sanitec going forward.
Since December, Sanitec and its advisers have conducted a comprehensive exploration of all the options available to the company in order to strengthen the company’s financial position. Agreement on this proposal has been reached based on Sanitec’s priorities of (i) deleveraging the business and creating a sustainable long-term capital structure; (ii) positioning the business for long-term growth in the face of unprecedented economic uncertainty in the marketplace; and (iii) maximising recoveries for existing lenders based on the seniority of their claims.
Commenting on the situation, Sanitec’s President and CEO Bengt Pihl said: “I am delighted that we have reached agreement with the senior lender steering committee on the terms of a financial restructuring for Sanitec. Sanitec remains committed to delivering first class product to its customers and for Sanitec’s customers, employees and trade suppliers, it is business as usual”.
Sanitec is a European multi-brand group domiciled and headquartered in Finland that designs, manufactures and markets bathroom ceramics and bath and shower products.
www.sanitec.com
ENDS