UPM agrees re-financing

UPM has agreed on new financing arrangements totaling US$675m.

The Finnish-based forest products firm said it had agreed on the new bilateral committed credit facilities, which are all currently undrawn.

UPM said the new agreement comes in advance of the March 2012 expiry of its €1bn syndicated credit facility - which serves as the group’s financial back stop.

The rest of the re-financing is planned to be agreed by the end of the first quarter of 2011.

UPM has also agreed on new bank loans totaling €800m to finance its recently announced Myllykoski transaction, which is part of a strategy to improve its cashflow and mid-term profitability.