Tornator re-arranged its long-term interest rate hedges

Tornator Oyj Stock Exchange Release, 9 June 2023 at 9 AM Tornator re-arranged itslong-term interest rate hedges Forestry company Tornator has agreed on changes to its long-term interest rate hedges. All old interest rate swaps with a total nominal value of EUR 339 million were terminated in their entirety and replaced with interest rate cap options with a total nominal value of EUR 170 million. The maturities of the terminated interest rate swaps were 2028, 2047 and 2048, and the new...

Imatra, 09/06/2023 (informazione.it - comunicati stampa - agricoltura)

Tornator Oyj

Stock Exchange Release, 9 June 2023 at 9 AM

Tornator re-arranged its

Forestry company Tornator has agreed on changes to its long-term interest rate hedges. All old interest rate swaps with a total nominal value of EUR 339 million were terminated in their entirety and replaced with interest rate cap options with a total nominal value of EUR 170 million. The maturities of the terminated interest rate swaps were 2028, 2047 and 2048, and the new interest rate cap options mature in 2033. The positive fair value of the terminated contracts was used to pay the option premia of the new contracts, i.e. the arrangement had no cash flow effect at the time of execution.

With the arrangement, the company's immediate financing costs will decrease and the average maturity of the interest rate hedges becomes shorter. In addition, the interest rate hedge portfolio's exposure to fair value changes caused by changes in market interest rates is significantly reduced. Key driver for the derivative arrangement was the adoption of the new, market transaction based valuation method for the company's Finnish forest assets, which reduced the strategic need for long-term discount rate stabilization

In addition to the option premia already paid, the company has no payment obligations in respect of the new option arrangements and accordingly no hedging liabilities that would be secured by the existing secondary security arrangements of the company.

CFO Antti Siirtola, tel. +358 40 773 0975

www.tornator.fi/en