Finland-based international rental giant Cramo has refinanced long-term credit agreements totaling €375 million (about U.S. $510 million). Cramo has signed a new long-term club loan to refinance existing long-term loan facilities.
The existing facility was agreed to in 2010 and was due to mature in December 2015. The new unsecured syndicated loan matures on Jan. 1, 2020 with a one-year extension option. The loan consists of a €125 million term loan and a €250 million revolving credit facility. The loan’s one financial covenant is the net debt to EBITDA ratio.
“The refinancing of Cramo’s long-term syndicate loan agreement is important for the company from several perspectives,” said Martti Ala-Harkonen, Cramo’s chief financial officer. “The new loan agreement improves the maturity profile of Cramo’s debt portfolio and reduces the group’s interest expenses. Furthermore, the new loan agreement, with one financial covenant instead of the previous two, provides additional flexibility for the group to pursue a growth strategy both organically and through acquisitions.”
Based in Vantaa, near Helsinki, Finland, Cramo has 360 branches in 15 countries.