Mondi Plc, Europe’s largest maker of office paper, said it issued a 750 million-euro ($1.1 billion), five-year multi-currency revolving credit facility to refinance existing debt.
The facility was arranged by Barclays Capital, BNP Paribas SA, Citigroup Inc., Commerzbank AG, Deutsche Bank AG, Erste Group Bank AG, Societe Generale Corporate & Investment Banking, Raiffeisen Bank International AG, the Royal Bank of Scotland Plc and UniCredit SpA, the company said in a statement to Johannesburg’s bourse today.
The transaction completes Mondi’s refinancing of its 1.55 billion-euro facility that was due to mature in June 2012. The company issued a 500 million-euro, seven-year Eurobond in March last year to help pay down existing debt. The notes due 2017 fell, raising the yield by 1 basis point, or 0.01 percentage point, to 5.20 percent at 9:05 a.m. in Johannesburg.
“The success of this transaction further strengthens the group by extending our debt maturity profile and provides us with additional financial flexibility,” Chief Financial Officer Andrew King said in the statement.