Nordic Paper, a producer of paper and pulp products, has secured a new financing agreement following a change in its ownership control.
The new financing agreement consists of a Skr1.4bn ($127.4m) term loan and a €65m revolving credit facility.
The agreement will not materially impact Nordic Paper's net results or leverage and extends until 2026, similar to the previous financing terms.
The change in ownership control was triggered when Strategic Value Partners, acting through Coniferous Bidco, acquired a controlling stake in Nordic Paper last month.
Strategic Value Partners initially made a public offer in October 2024 to purchase all Nordic Paper shares at Skr50 per share. This offer became unconditional in December 2024, with the acceptance period extended twice, concluding on 8 January 2025.
By the close of the final period, Coniferous Bidco had secured approximately 85.67% ownership of Nordic Paper's shares and votes.
Additionally, the company acquired 802,000 warrants from Nordic Paper's incentive programmes, equating to approximately 1.18% of the company’s shares and votes on a fully diluted basis.
No shares or financial instruments were held by Coniferous Bidco before the public offer.
This acquisition marks a shift in Nordic Paper's ownership structure while maintaining its operational stability under new financial arrangements.
Nordic Paper's board of directors has announced new financial targets, including an annual long-term net sales growth between 2% and 4%, supported by selective acquisition opportunities. The company aims to achieve an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of approximately 20% over the medium term.
Meanwhile, the net debt-to-EBITDA ratio is set to remain below 2.5x, though temporary exceedances may occur during acquisitions.
Nordic Paper also outlined a dividend policy to distribute 50-70% of its net profit as dividends, considering the company’s financial position, liquidity, future investments, and broader market conditions.
