Norsk Hydro ASA has signed a USD 1,700 million syndicated revolving multi-currency credit facility with a syndicate of 13 international banks. The facility is for general corporate purposes.
Hydro has now established a new credit facility, replacing the facility which was to mature in July 2014. The credit facility has a five-year tenor, and includes two one-year extension options.
"This is a confirmation of our core banks' strong support to Hydro," Executive Vice President and CFO Eivind Kallevik says.
"The smooth process and the terms concluded reflect trust built over many years, and is a great achievement for the company," he says.
Commerzbank, Handelsbanken and Nordea acted as Co-ordinating Bookrunners and Mandated Lead Arrangers on the transaction. In addition, BNP Paribas, Citibank, Danske Bank, DNB, SEB and Société Générale acted as invited Bookrunners and Mandated Lead Arrangers, and Goldman Sachs, ING, JP Morgan and Morgan Stanley participated in the transaction as Lead Arrangers. Nordea acts as facility agent, and Commerzbank acted as documentation agent.
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.