Swedish rolled aluminium firm Gränges AB said yesterday that it has refinanced a 2016 credit agreement it negotiated for the purchase of American subsidiary Gränges Americas Inc.
Gränges indicates that the new credit facility is a revolving facility of SEK2,000 million and a term of 3 years with an option to extend for another 2 years, a 5-year term loan of US$100 million, and a 3-year revolving credit facility for Gränges Americas Inc. totaling US$50 million.
Danske Bank A/S, Danmark, Sverige filial, Nordea Bank Abp, filial i Sverige, and Svenska Handelsbanken AB (publ). served as mandated lead arrangers for the credit agreements, while Danske bank A/S served as the facility agent.
The above facilities join an additional 4-year term loan of US$25 million, which was settled in conjunction with the other financial agreements. AB Svensk Exportkredit was the financial institution that served as lender in this deal.
Gränges says it will pay a corresponding amount on the original credit facility. It does not expect a positive nor negative effect on its financial costs for the current year.
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,000 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts an annual sales total of SEK10 billion (US$1.09 billion).