Shares hit a new high on Smurfit refinancing
Packaging giant Smurfit Kappa is due to finalise terms of a debt refinancing deal this month.
Shares hit an all-time high of €13.38 each at one stage yesterday and closed up 1.3pc at €13.07, valuing the company at just shy of €3bn.
The group said in June that it was in discussions with its banks to refinance its senior secured credit facility with an unsecured relationship bank facility.
News agency Bloomberg has reported that the company is now poised to finalise a deal.
It said that Smurfit Kappa's new €1.1bn in unsecured financing comprises a term loan and a revolving credit facility. It said the facility will have a five-year maturity.
The co-ordinator and bookrunner is RBS, while co-bookrunners include Citi, Credit Agricole, Danske, HSBC and JP Morgan.
Davy Stockbrokers has pencilled in a share price target of €15 for the stock, saying new assets in Mexico remain undervalued by investors.