Borregaard: Loan agreement for LignoTech Florida

LignoTech Florida LLC has entered into a USD 60 million loan agreement with Skandinaviska Enskilda Banken (SEB). The loan facility is guaranteed 70% by the Norwegian Export Credit Guarantee Agency (GIEK) and has a tenor of eight and a half years from project completion. The owners, Borregaard (55%) and Rayonier Advanced Materials (45%), will guarantee the loan facility on a pro rata basis until 12 months after project completion. The purpose of the loan is to finance completion of the USD 110 million greenfield lignin operation in Florida scheduled to be commissioned mid-2018. In addition, a working capital facility will be established.

For more information about the project in Florida, see stock exchange notices of 9 December and 28 June 2016, and also 17 December and 1 June 2015.

Sarpsborg, 12 June 2017

Contacts:
Per Bjarne Lyngstad, CFO [phone]
Jørn Syvertsen, Director Investor Relations [phone]

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.  

 

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Source: Borregaard via Globenewswire