Bergs Timber AB has entered into an agreement with Danske Bank A/S, Denmark, Sweden Branch and Skandinaviska Enskilda Banken AB as lenders regarding, among other things, refinancing of the major part of the Group’s existing loans.
The new credit facilities in the total amount of SEK 650 million ($69 million) have a three-year term and include one term loan of SEK 250 million ($26.5 million) and a revolving loan facility of SEK 400 million ($42.4 million).
The loan agreement contains customary covenants that, among other things, limit the decision-making for Bergs Timber AB regarding pledging of assets, borrowing or granting guarantees, disposal of assets, acquisitions and merging or consolidating business with other companies. In addition, the loan agreement stipulates that yearly dividends shall not exceed 40% of previous year’s net profit.
The Bergs Group consists of independent subsidiaries that develop, produce and market processed wood for various applications.
