Metso has signed two revolving credit facilities for future Metso Outotec and future Neles

Metso Corporation has signed two revolving credit facilities as part of the planned Metso Outotec transaction and creation of Neles.

EUR 600 million revolving credit facility

Advertisement

The new EUR 600 million multi-currency revolving credit facility agreement was signed with a syndicate of 10 banks. This new facility is part of the preparations for the planned Metso Outotec transaction while it also refinances Metso’s existing EUR 500 million revolving credit facility. The facility will transfer to Metso Outotec at the completion of the contemplated combination of Outotec and the Metso Minerals Business.

The new facility is to be used for the general corporate purposes of the Metso Group and later, following the transfer to Metso Outotec, for general corporate purposes of the combined company. The facility has a tenor of five years, with two one-year extension options, dependent on the approval of the lenders.

Nordea acted as Coordinating Bookrunner and Mandated Lead Arranger. The other Mandated Lead Arrangers were BBVA, BNP Paribas, Citi, Commerzbank AG, HSBC, OP Corporate Bank plc, Scotiabank (Ireland) Designated Activity Company, SEB and Standard Chartered Bank.

EUR 200 million revolving credit facility

In addition to the above, Metso Corporation has signed a new EUR 200 million multi-currency revolving credit facility agreement for future Neles Corporation with a syndicate of four banks. The new facility will be used for general corporate purposes of the Neles Group and will become available at the completion of the contemplated partial demerger of Metso Corporation. The facility has a tenor of three years, with two one-year extension options dependent on the approval of the lenders.

Nordea acted as Coordinating Bookrunner and Mandated Lead Arranger. The other Mandated Lead Arrangers were BNP Paribas, OP Corporate Bank plc, and SEB.

The planned transaction in brief

On July 4, 2019, Metso announced that its Board of Directors has approved a plan to combine Metso Minerals Business and Outotec to create Metso Outotec. As a result, the Flow Control business will become the continuing business of the currently listed Metso, which will be subsequently renamed Neles, an independent flow control equipment and services company. The transaction will be executed through a partial demerger of Metso in which all assets and liabilities of Metso that relate to, or primarily serve, the Metso Minerals Business will transfer without liquidation of Metso to Outotec.