Terrafame has strengthened its financing position

Source: www.gulfoilandgas.com 1/25/2024, Location: Europe

Terrafame’s financing arrangements consist of a repayment of EUR 142 million in shareholder loans to Galena and Mandatum through stock option exercises and entering into a EUR 250 million loan agreement from a Nordic bank club.

As part of strengthening Terrafame Ltd’s (“Terrafame”) financing position, funds under the management of Galena Asset Management (“Galena”) and Mandatum Holding Ltd (“Mandatum”) have exercised stock options previously granted to them. The funds received from the stock options have been used to repay the EUR 142 million long-term term loans from Trafigura and Mandatum. As a result, Terrafame no longer has shareholder loans from Trafigura and Mandatum. As a part of the owners’ financial arrangement, Finnish Minerals Group (“FMG”) increased its revolving credit facility given to Terrafame from EUR 40 million to EUR 65 million and extended the facility term until June 2025.

In addition, Terrafame has signed a new loan agreement of EUR 250 million. The new facilities are unsecured and have a maturity of four years. The loan arrangement includes a EUR 100 million term loan and a EUR 150 million revolving credit facility (RCF). The purpose of the term loan is to refinance Terrafame’s existing indebtedness. The RCF will be used for working capital needs and general corporate purposes.

“These financing arrangements are a significant step in ensuring successful execution of our business plan. They demonstrate our shareholders’ continuing commitment to Terrafame’s growth and performance. Terrafame’s long-term sustainable and consistent development has paved the way for the EUR 250 million loan agreement from three Nordic banks. In the past years, Terrafame has systematically developed from an intermediate products company into an enabler in electric mobility, and our strategic decision to focus on the needs of electric transport has been right,” says Ville Sirviö, CFO of Terrafame Ltd. Terrafame’s shareholder base

After the option exercises, FMG shareholding in Terrafame is 56.1%, Galena’s 39.4% and Mandatum’s 4.5%. In accordance with the financing arrangements signed in 2017, FMG’s shareholding in Terrafame can decrease to a minimum of 50.1% if Galena and Mandatum exercise all their remaining option rights. Loan agreement

The loan agreement was provided by a club consisting of three Nordic banks; Danske Bank A/S, Nordea Bank Abp and Skandinaviska Enskilda Banken AB (publ.). Danske Bank A/S acted as the Coordinating Bookrunner and Mandated Lead Arranger as well as the Agent while Nordea Bank Abp and Skandinaviska Enskilda Banken AB (publ.) acted as Bookrunners and Mandated Lead Arrangers for the loan arrangement.

Aventum Partners Ltd acted as the financial advisor to Terrafame on the loan arrangement and HPP Attorneys Ltd as the legal advisor.


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