Nordenia raises €280m to eliminate its debt

The 9.75% senior second priority notes, which mature in 2017, were issued at a price of more than 98% of their face value. The company said proceeds from the offering will be used to repay most of its outstanding debt and to fund an equity distribution to shareholders, the first since 2004.

Nordenia, which has been majority owned by US private equity group Oaktree Capital Management since 2006, reported one of its best ever financial performances for 2009, with turnover of €663.7m and EBITDA result of €79.8m. Net debt stood at €150m at the end of the period, 42% below its 2006 levels.

The company said that both turnover and EBITDA results for the first quarter of 2010 are more than 10% ahead of the same period in last year.

Following the placement, Nordenia has entered into a new revolving credit facility with WGZ Bank of Germany, which provides it with a borrowing capability of up to €100 million.