PRESS RELEASE  2009-07-08

Munksjö’s owner EQT injects new capital and other financing has been renegotiated. The new financing provides Munksjö with a stable and long-term capital structure and reduces the Group’s interest cost to less than half.

”Munksjö has a profitable business, a strong market position and a competitive cost structure. Owners and lenders have collaborated in order for us to put a long-term financial structure in place. This shows confidence in Munksjö’s opportunities to emerge stronger from the recession,” says Munksjö’s CEO Jan Åström.

The main features of the financing are that the fund EQT III remains the principal owner and injects 40 million euro in equity, that senior debt has been renegotiated to longer maturities and improved terms and that mezzanine lenders convert their loans (130 million euro) to 20 per cent of the shares.

Overall, the new financial package reduces the Group’s total interest cost by more than half. Munksjö’s equity ratio will be over 25 per cent, the debt ratio 1.4 and net debt 180 million euro.

”The closing of mills in Italy and the US, together with several energy saving investments, gives us a very strong cost position long term. We now continue to focus on Munksjö’s future development by improving our product offering and continuously optimizing our competitiveness,” says Jan Åström.

For further information, please contact:
Jan Åström, CEO
phone: +46 705 860701

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