COMPONENTA: Extension for syndicated loan

Componenta signs one-year extension for the current syndicated loan.

Componenta has signed a one-year agreement extension to the current syndicate loan of EUR 164 million. The original due date of the loan was on 28 June 2012. The counter-parties of the syndicated loan are the same financier banks Pohjola, Swedbank, Nordea, Unicredit, RBS, HSH Nordbank and Danske Bank. During 2012 Componenta will amortize the syndicated loan to more than half of its current amount.

Componenta will strengthen its balance sheet in 2012 through a share issue of EUR 10-20 million starting on 20 March 2012 and by issuing a hybrid bond of EUR 20 million and by selling off the unit in Manisa, Turkey, that produces aluminium wheel for passenger cars. Through these measures combined with the cash flow from operations in 2012, the Group estimates it can reduce its interest-bearing debt by about one third.

The selling preparations of the Manisa Wheels business unit have proceeded as expected. The investment bank Augusta & Co. was hired to prepare the sale of the unit. The target is to finalize the sale of Manisa Wheels during summer 2012.

Componenta’s intention is to re-finance the syndicate loan by the end of 2012 through a new long term financing, which is estimated to be some EUR 90 million.

Helsinki, 20 March 2012