Ahlstrom enters into credit facility.Ahlstrom has entered into a multicurrency revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility agreement for the amount of 200 million[euro] with six relationship bands. The new credit facility replaces an existing corresponding revolving credit facility expiring in November this year and is available for general corporate purposes and refinancing of the existing credit facility. The new facility has a maturity of three years. The terms and conditions of the facility agreement contain customary covenants and undertakings including the requirement to maintain certain net debt-to-equity ratios debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. . Dividend payments and other distributions to shareholders will also be restricted. As a result of these restrictions, dividend payments and other distributions will be subject to an equity injection, or the issuance of other instruments treated as equity under IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System or other agreed subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". instruments sufficient for Ahlstrom to reduce its net debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. by approximately 20 percentage points as calculated based on the company's balance sheet at the end of the first quarter of 2009, as well as sufficient cash flow. The restrictions do not apply to dividends that become payable under law (minority dividend). Additionally, Ahlstrom has raised new medium-term debt of C55 million during the first half of 2009. Together with the new 200 million[euro] revolving credit facility, this improves Ahlstrom's debt maturity profile. |
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