Ahlstrom-Munksjo & SPA Holdings sign facilities agreement

26 Feb '21

2 min read

Pic: Ahlstrom-Munksjo

Ahlstrom-Munksjo has entered into an intercompany facilities agreement with Spa Holdings 3 Oy and Spa US Holdco. Ahlstrom-Munksjo provides fibre-based products such as decor paper, filters, release liners, nonwoven fabrics, electro-technical paper, glass fibre materials, food packaging and labelling, tape, medical fibre materials for medical diagnostics.

Under the agreement, SPA Holdings 3 will make available to Ahlstrom-Munksjö a term facility of up to €550 million and a revolving facility of up to €270 million and SPA US Holdco will make available to Ahlstrom-Munksjö USA facilities of up to $260 million for the purposes of refinancing existing indebtedness of Ahlstrom-Munksjö and its subsidiaries as required, and for providing Ahlstrom-Munksjö and its subsidiaries financing for its general corporate purposes and working capital requirements, Ahlstrom-Munksjö said.

The facilities are made available to Ahlstrom-Munksjö and Ahlstrom-Munksjö USA by the lenders in all material respects reflecting the terms of the committed senior term facilities and senior bridge facilities obtained by the lenders from independent third party banks for such purposes, with the exception of a 12 month maturity, customary margin spread, and other customary changes for such intercompany loan instrument, according to Ahlstrom-Munksjö.

Spa Holdings 3 has acquired through a public tender offer more than 90 per cent of all the issued and outstanding shares and votes in Ahlstrom-Munksjö. Therefore, signing of the intercompany facilities agreement is considered a transaction between the company and a closely-related party, Ahlstrom-Munksjö said in a press release.

Fibre2Fashion News Desk (GK)

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