General policy
Norske Skog shall operate by these guidelines to have financial flexibility to fund short and long-term capital requirements and to maintain a capital structure that suits the group’s strategy.
- Norske Skog shall aim to have access to a diversified range of capital sources.
- Norske Skog shall aim to have a leverage ratio less than 2x. Leverage ratio is defined as net interest bearing debt to last twelve months EBITDA.
- Norske Skog shall aim to keep the maturity profile on it’s main financing arrangements spread out to reduce refinancing risk. Refinancing of major debt obligations shall be initiated well in advance of respective maturities.
Debt financing
Bond issue
Norske Skog has a NOK 1 600 million bond outstanding. The bond matures in June 2029.
| ISIN | NO0013262451 |
| Issuer | Norske Skog ASA |
| Prospectus | Norske Skog ASA - Bond prospectus Security Note Document |
| Amount | NOK 1 600 million |
| Coupon rate | 3m NIBOR + 4.5 % p.a. |
| Issue date | 24 June 2024 |
| Maturity date | 25 June 2029 |
Financial covenants
The financial covenants set out below apply for the NOK 1 600 million bond on a group consolidated basis.
- Freely available and unrestricted cash and cash equivalents of minimum NOK 100 million.
- EBITDA* to net interest costs of minimum 2.0:1.
- Book equity to total assets of minimum 25%.
- In addition, there are various company specific financial covenants applicable to the subsidiaries acting as borrowers under the respective credit facilities.
*The EBITDA used in the financial covenants’ calculations may differ from the EBITDA shown in the financial reporting due to adjustment requirements in the financing agreements.