Ramirent signs EUR 75 million term loan linked to its safety targets
Ramirent Plc Stock Exchange Release May 31, 2019 at 10:00 EET
Ramirent Plc has today signed a EUR 75 million syndicated term loan facility agreement with Danske Bank A/S, Nordea Bank Abp and OP Corporate Bank plc. The three-year loan will be used for financing the earlier announced Stavdal acquisition that is expected to be closed latest by the end of Q3 2019.
The margin of the loan will increase or decrease dependent on Ramirent meeting two sustainability key performance indicators:
- Safe place to work
- Sales growth of safety offering
"At Ramirent, we take safety of our employees, sub-contractors and customers extremely seriously. We have set ambitious targets both for reducing work related accidents as well as for increasing the sales of rental equipment and related services that improve the safety of our customers' work places e.g. on construction and industrial sites. I'm pleased to see that our financiers also see the importance of these targets," says Ulrika Dunker, Executive Vice President, Human Resources and HSEQ at Ramirent.
Ramirent's readiness to combine the sustainability and financial targets is demonstrating its commitment to continuous improvement. The company is working hard to achieve the next milestone to lower the lost time incident frequency rate below 5 and is targeting to increase the sales of safety offering by seven percent per annum.
"We are pleased to have successfully syndicated and signed this new sustainability linked credit facility with our relationship banks. With our strong balance sheet and commitment from our lenders, we are well positioned to continue delivering on our strategy and seek profitable, capital efficient growth in our core equipment rental business," says Petteri Järvinen, Group Treasurer of Ramirent.
Ramirent has committed long-term senior credit facilities of EUR 560 million in total. On 31 March 2019, Ramirent's net debt was EUR 423.6 million. The impact of the IFRS 16 "Leases" accounting standard on net debt was EUR 94.8 million.
For further information, please contact:
Petteri Järvinen, Group Treasurer, Ramirent Plc, +358 (0)20 750 2849
Ramirent is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,905 co-workers at 294 customer centers across 9 countries in northern and eastern Europe. In 2018, Ramirent Group net sales reached a total of EUR 712 million. Ramirent - Gear Up. Equipment rental at your service
Distribution: Nasdaq Helsinki, main news media, www.ramirent.com