Investment funds managed by Oceanwood Capital Management Limited have now acquired 100% of the shares in Norske Skog AS following a lengthy process of regulatory approvals.
The net purchase price after adjustments was approximately EUR 236 million in cash. EUR 231 million is expected to be distributed to the holders of the EUR 290 million senior secured notes due 2019 (SSNs) and the lenders under the EUR 16 million liquidity facility (Liquidity Facility) shortly after closing, whilst the remaining balance will be held in an escrow account for a period of six months pending further potential price adjustments to be determined post- closing.
Following the completion of the transaction, Norske Skog AS and its subsidiaries will be released from their remaining obligations under the SSNs and the Liquidity Facility.
After completion of the transaction, the group will have gross interest-bearing third-party debt (i.e. excluding debt to companies controlled by the group’s new owner Oceanwood) of approximately NOK 600 million, related to investments such as the biogas facilities in Norway and France and factoring financing of the group’s trade receivables in France and Australia. As of 30 June 2018, the group’s cash amounted to approximately NOK 700 million.
The group’s gross operating earnings for the last twelve months ending September 2018 is estimated to be just above NOK 1,000 million.
Norske Skogindustrier AS was declared insolvent by the board of the parent company Norske Skog, at the end of 2017.