Outokumpu - Voluntary total redemption of EUR 250 million fixed rate notes due in 2024
On December 8, 2021, Outokumpu Oyj announced the total redemption of its EUR 250 million senior secured notes due in 2024. This redemption, financed through existing cash reserves, is part of the company's strategy to reduce debt. CFO Pia Aaltonen-Forsell noted that the firm had already prepaid EUR 210 million in debt this year, lowering net debt to EUR 749 million. Consequently, the leverage ratio decreased to 1.0, below the target of 3.0, and Moody's upgraded the company's rating to Ba3 with a stable outlook.
- Total redemption of EUR 250 million senior secured notes improves financial stability.
- Reduction of net debt to EUR 749 million enhances liquidity.
- Leverage ratio decrease to 1.0 is significantly below the target of 3.0.
- Moody's upgraded rating to Ba3 reflects improved financial health.
- None.
HELSINKI, Dec. 8, 2021 /PRNewswire/ -- Following the announcement made on November 4, 2021 Outokumpu Oyj confirms that it has redeemed in full its outstanding 4.125 percent rated senior secured fixed rate notes due in 2024 using existing cash reserves to finance the redemption.
Says CFO Pia Aaltonen-Forsell: "Outokumpu continues the de-leveraging of the company in accordance with its current strategy. Since the beginning of this year, the company had already prepaid outstanding debt in an amount of EUR 210 million, bringing net debt to EUR 749 million at the end of Q3/2021 and leading to considerable savings in finance costs. Simultaneously the leverage ratio has decreased to 1.0, which is well below the target level of 3.0."
Reducing leverage and maintaining good liquidity remains a priority also going forward. The company´s good profitability combined with the debt reduction has resulted in Moody's recently increasing Outokumpu' s corporate family rating to Ba3 with a stable outlook.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, VP – Group Communications, tel. +358 40 753 7374
Outokumpu Group
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SOURCE Outokumpu Oyj
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