Smurfit extends debt security
Packaging group Smurfit Kappa has completed a €250m trade receivables securitisation programme that extends the company's debt maturity out slightly to 5.4 years.
In a statement to the stock exchange yesterday, Smurfit Kappa said that it now had no material debt maturity before 2013.
The company had an existing €210m securitisation programme that had been due for repayment in September 2011. That will be refinanced with the proceeds from the fresh securitisation, while a portion of bank debt will also be repaid.
Smurfit Kappa added its debt maturity profile was extended to 5.4 years from 5.2 years "at a very competitive cost, strengthening its debt capital ratio".
Chief financial officer Ian Curley said the latest securitisation highlighted the company's "proactive debt capital structure management".
Bloxham Stockbrokers is forecasting that Smurfit Kappa will end the 2010 financial year with net debt of €3.08bn.
It added that assuming €40m of the new securitisation was used to pay down debt, the final net debt figure would be slightly better than its expectation.