The company is replacing the bilateral credit facilities, totalling EUR 160M (USD 205M), originally agreed to mature in December 2013, Lemminkäinen stated.
The credit facilities include two covenants reviewed on a quarterly basis; average equity ratio over four quarters and the average net debt to EBITDA ratio over four quarters. The facilities are unsecured.
"We are pleased to be able to increase our credit facility. This financing arrangement will strengthen our liquidity and give us more financial flexibility," said Robert Öhman, CFO of Lemminkäinen.
Nordea Bank Finland Plc acted as the coordinating bank for the credit facilities. Danske Bank A/S, Helsinki Branch, Pohjola Bank Plc and Handelsbanken are involved in the arrangement, contributing varying shares of the financing.