Outokumpu Signs $330 Million Loan as Inoxum Deal Is Completed
Outokumpu Oyj (OUT1V) signed a 250 million- euro ($330 million) forward start facility with Nordea Bank AB, extending the maturity of a loan to January 2014 from June 2013.
The Finnish steelmaker, which completed its acquisition of ThyssenKrupp AG (TKA)’s Inoxum unit today, agreed to the debt deal earlier this month, it said in a stock exchange statement. The forward start facility, a type of loan that locks in financing terms before existing debt matures, will replace a 400 million- euro loan signed in April 2012 when it comes due next year, Outokumpu said.
Outokumpu agreed to buy Inoxum on Jan. 31 in a deal valuing the German unit at about 2.8 billion euros. ThyssenKrupp received a 29.9 percent stake in Outokumpu and a 1.25 billion- euro loan note. The Espoo, Finland-based Outokumpu assumed 133 million euros of Inoxum’s debt and 338 million euros of pension liabilities.
Selling Inoxum is part of ThyssenKrupp’s strategy to reduce its reliance on steel and expand other operations as waning auto and construction industry demand for the material reduces its profit margins.
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