Ramirent Plc has signed a €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 previously announced acquisition of Stavdal, expected to close by the end of the third quarter. 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,” said Ulrika Dunker, executive vice president of human resources and HSEQ at Ramirent. “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."
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 7 percent annually.
"We are pleased to have successfully syndicated and signed this new sustainability linked credit facility with our relationship banks,” said Petteri Järvinen, group treasurer of Ramirent. “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."
Ramirent has committed long-term senior credit facilities of €560 million in total. On March 31, 2019, Ramirent’s net debt was €423.6 million. The impact of the IFRS 16 "Leases" accounting standard on net debt was €94.8 million.
Stavdal, one of Sweden’s largest equipment rental companies, had 2018 revenues of €79 million in 2018, and EBITDA of about €28 million. Ramirent paid about €158 million. Ramirent, one of Europe’s largest rental companies, is based in Vantaa, Finland.