SKG: Smurfit Kappa Group PLC: Statement re successful completion of €1.375 billion Senior Credit Facility Re-financing

  SKG: Smurfit Kappa Group PLC: Statement re successful completion of €1.375
  billion Senior Credit Facility Re-financing

UK Regulatory Announcement


            Smurfit Kappa Group announces successful completion of
              €1.375 billion Senior Credit Facility Re-financing

      Re-positions the Group’s debt profile from leveraged to corporate

     Reduces interest costs, extends debt maturity and earnings accretive

                                SKG:ID SKG:LN

Smurfit Kappa Group plc (‘SKG’ or the “Group”) is pleased to announce that it
has successfully completed the refinancing of its existing senior secured
credit facility with a new 5 year unsecured relationship bank facility. In
connection with the refinancing, the collateral securing the obligations under
the Group’s various outstanding senior notes and debentures has also been
released and the senior notes and debentures are therefore now unsecured. The
transition of the capital structure from secured to unsecured reflects the
re-positioning of SKG’s credit profile from leveraged to corporate.

The new €1,375 million 5 year facility comprises a €750 million term loan with
a margin of 2.25% and a €625 million revolving credit facility with a margin
of 2.00%, reduced from margins of 3.75% and 3.25% respectively. The Group
expects cash interest savings from the refinancing will be approximately €13
million per annum and the transaction will be immediately earnings accretive.
There will be a one-off exceptional cost of approximately €16 million arising
from the accelerated amortisation of unamortised deferred debt issue costs
related to the existing facility.

The transaction was initially launched at €1,100 million and was upsized to
€1,375 million following a substantial oversubscription. A total of 22 banks,
all of whom are SKG relationship banks, have committed to the new facility.
Citi, Crédit Agricole Corporate & Investment Bank, Danske Bank A/S, HSBC Bank
plc, JPMorgan Chase Bank N.A. and The Royal Bank of Scotland plc / Ulster Bank
Ireland Limited acted as Bookrunners and Mandated Lead Arrangers. The Royal
Bank of Scotland plc was sole Co-ordinator.

In addition to the new senior facility, SKG has put in place a 5 year trade
receivables securitisation programme of up to €175 million utilising the
Group’s receivables in Austria, Belgium, Italy and the Netherlands. The
programme, which has been arranged by Rabobank and carries a margin of 1.70%,
will complement the Group’s existing €250 million securitisation programme.

Ian Curley, Smurfit Kappa Group CFO, commented: “These transactions
re-position SKG’s debt portfolio from a secured leveraged structure post take
private in 2002 to an unsecured corporate profile. The new facilities will
lower SKG’s overall cost of capital, materially reduce debt servicing costs,
enhance earnings and provide greater financial flexibility, including the
potential to refinance part of its more expensive bond debt at the appropriate

Smurfit Kappa

Smurfit Kappa is one of the leading producers of paper-based packaging in the
world, with around 41,000 employees in approximately 350 production sites
across 32 countries and with a sales revenue of €7.3 bn in 2012.

Innovation, service and pro-activity towards customers, using sustainable
resources, is our primary focus. This focus is enhanced through us being an
integrated producer, with our packaging plants sourcing the major part of
their raw materials from our own paper mills. We are the European leader in
paper-based packaging, operating in 21 countries selling products including
corrugated, containerboard, bag-in-box, solidboard and solidboard packaging.
We have a growing base in Eastern Europe in many of these product areas. We
also have a key position in other product/market segments including
graphicboard, MG paper and sack paper.

We are the only large scale pan regional player in the Americas, operating in
11 countries in total in North, Central and South America.


For further information contact:

Seamus Murphy                    FTI Consulting
Smurfit Kappa Group
Tel: +353 1 202 71 80                 Tel: +353 1 663 36 86
E-mail:           E-mail:


Smurfit Kappa Group PLC
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