As part of the previously announced long-term goal of changing the capital structure through increased borrowing, the Rottneros Group has signed agreements on debt financing within the framework of the investment program Agenda 500.
The increased funding amounts to a total of SEK 120 million and will be used for investments in the Group's two mills. The loans will be repaid within five years and have a variable interest rate.
Loan terms include customary covenants for example in the form of net debt in relation to EBITDA, the equity ratio and certain restrictions on dividend opportunities.
Rottneros is an independent producer of market pulp. The Group comprises the parent company Rottneros AB, listed on NASDAQ Stockholm, and its subsidiaries Rottneros Bruk AB and Vallviks Bruk AB with operations involving the production and sale of market pulp. The Group also includes the wood procurement company Rottneros Baltic SIA in Latvia. The Group has just over 260 employees and had a turnover of approximately SEK 1.8 billion in the 2015 financial year.