Loans and credit facilities

The Board of Directors of Stockmann decided to file for corporate restructuring of the parent company Stockmann plc on April 6, 2020. On April 8, 2020 the District Court of Helsinki ruled to initiate the corporate restructuring proceedings of Stockmann plc in accordance with the Restructuring of Enterprises Act. Stockmann plc’s decision to file for restructuring was supported by debtors representing more than half of the debts, and Stockmann continues to have a constructive dialogue with its financers also during the restructuring phase.

As a result of the filing for restructuring the District Court ruled a temporary prohibition of collection for Stockmann plc and the Group’s external debts (interest bearing loans including the hybrid bond which is treated as equity, and other short-term liabilities) are subject to restructuring.

Stockmann´s financing mainly include bank loans, credit facilities, corporate bonds and a commercial paper programme. Additionally, Stockmann also has a hybrid bond, which is treated as equity in the company’s consolidated financial statements.  All these facilities are restructuring debt currently.

Committed credit facilities
Stockmann signed for secured credit facilities of EUR 650 million on November 2017 with OP Corporate Bank plc, Danske Bank A/S, Nordea Bank AB (publ), DNB Bank ASA, Svenska Handelsbanken AB (publ) and Swedbank AB (publ). The maturity of these facilities was initially up to October 2021.The facilities have been partly repaid and cancelled during 2018-2020, and the remaining amount is  EUR 185,4 million, is part of the secured restructuring debt. Read more.

Corporate bonds
Stockmann issued secured senior bonds to a value of EUR 250 million in December 2017. Initially the maturity of the bonds was up to 11 January 2022 and carry a fixed interest rate of 4.75 per cent per annum. The bonds are part of the secured restructuring debt. The bonds are listed on Nasdaq Helsinki. Listing prospectus 21.12.2017.

Commercial papers
Stockmann had a EUR 600 million commercial paper programme in co-operation with five banks in Finland. The arrangers for the programme were Danske Bank, Svenska Handelsbanken, Nordea Bank, OP Bank and Swedbank.The programme was terminated as a result of the filing for the corporate restructuring.  On April 6, 2020, EUR 53,5 million was in use, this amount is restructuring debt.

Hybrid bond
Stockmann has a EUR 106 million hybrid bond. The bond has no maturity, it´s interest rate is 10,75 % per annum since January 31, 2020.  The hybrid bond is part of the restructuring debt. Read more.

Credit rating
Stockmann has not applied for a credit rating from any credit rating institution

Financial risk management
Stockmann’s financing and the management of financial risks are handled on a centralized basis within the Treasury function in accordance with the policy adopted by the Board of Directors. All derivate contracts were closed by the banks on 6 April 2020. The Group is not hedging its foreign exchange positions currently. For information about the financial risk management, see the note 4.8 in the Financial Statements.

Maturity structure of interest bearing liabilities