Boards of Directors of YIT Corporation and Lemminkäinen Corporation approved the completion of the merger on January 31, 2018 and the merger was completed on February 1, 2018. YIT Corporation’s EUR 240 million bridge financing agreement and EUR 300 million revolving credit facility, which were agreed in connection with the merger planning, are available as of February 1, 2018. Both limits are currently unused. In the bridge financing agreement, Nordea and Danske Bank act as lead arrangers and arrangers, and Danske Bank as agent. In the revolving credit facility Nordea, Danske Bank, OP Corporate Bank, Handelsbanken, SEB, Swedbank act as lead arrangers and arrangers and LähiTapiola as arranger and Danske Bank as agent.
The bridge loan is available until the end of April 2018. The maturity date of the bridge loan is in August 2018, and the agreement includes an option for six-month extension.
The maturity date of the revolving credit facility is in August 2020, and it includes an option for a one-year extension.
The agreements include two financial covenants, which are monitored quarterly: gearing (the ratio of net debt to equity) and interest cover ratio (EBITDA to net interest payments).
Both agreements are committed and unsecured.
The new revolving credit facility replaces earlier revolving credit facilities. YIT cancelled its earlier EUR 200 million revolving credit facility and Lemminkäinen’s earlier EUR 200 million revolving credit facility.
In addition, EUR 100 million fixed rate unsecured senior bond originally issued by Lemminkäinen, maturing in July 2019 was transferred to YIT’s responsibility in connection with the registration of the execution of the merger. According to the decision made in the noteholders’ meeting on 18 August 2017, the amendments to the terms and conditions of the notes became effective when the merger was completed (the “Effective Date”) which was on February 1, 2018. Due to the completion of the merger, also the change in trading code from LEMM06072019 to YIT06072019 came into effect on February 1, 2018. The new terms and conditions of the notes include one financial covenant, monitored quarterly: equity ratio.
Lemminkäinen announced on January 31, 2018 that it will redeem the outstanding share of the EUR 70 million hybrid bond. The outstanding nominal amount is EUR 35.2 million. The hybrid bond was issued on March 11, 2014. The redemption will be made on March 30, 2018 in accordance with the terms and conditions of the hybrid bond, and as a result thereof the payment will take place on April 3, 2018.
Helsinki, February 1, 2018
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, firstname.lastname@example.org
Ilkka Salonen, CFO, YIT Corporation, tel. +358 40 570 1313, email@example.com
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and significant North European construction company. We develop and build apartments, business premises and entire areas. We are also specialised in demanding infrastructure construction and paving. Together with our customers our 10,000 professionals are creating more functional, more attractive and more sustainable cities and environments. We work in 11 countries: Finland, Russia, Scandinavia, the Baltic States, the Czech Republic, Slovakia and Poland. The new YIT was born when over 100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1, 2018. Our combined annual revenue for 2017 was over EUR 3.8 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com