New loan agreement: Lenzing secures 545 million euros

Austrian fibre manufacturer Lenzing AG has strengthened its financial base. On Thursday, the group announced that it had agreed to new financing through a syndicated loan of 545 million euros. Lenzing stated that this move would strengthen “the company's liquidity reserve with regard to upcoming refinancing”.

According to the company, the new financing package comprises “a term loan with a term of three years amounting to 355 million euros and a revolving loan of 190 million euros with a term of also three years with extension options of a total of two years”. The lenders are a consortium of well-known banks, including Commerzbank AG, Erste Group Bank AG, Raiffeisen Bank International AG, BNP Paribas and UniCredit Bank Austria AG.

Nico Reiner, the chief financial officer (CFO) of Lenzing, praised the agreement. He explained in a statement: “The successful financing on attractive terms in the currently uncertain market situation is a strong vote of confidence and a clear confirmation of our good position in the global fibre market”. “With this successful financing, we are strengthening our financial base and further expanding our position as a leading integrated fibre company.”