Debt information

SKF’s policy is to have long-term financing of its operations. As of 31 December 2015, the average maturity of SKF’s loans was five years.

SKF has four notes issued on the European bond market. EUR 234 million due 2018, EUR 266 million per 2019, EUR 750 million per 2020 and one with an outstanding amount of EUR 500 million, due 2022. According to the conditions of the notes, the notes’ interest rate may increase by 5% in case of a change of control of the company in combination with a rating downgrade to a non-investment grade as a consequence of this. Change of control meaning any party/concerted parties acquiring more than 50% of SKF’s share capital or SKF’s shares carrying more than 50% of the voting rights. Since SKF has relatively standardized loan documentation similar conditions also apply to other loan agreements. In addition to the loans mentioned above SKF also has four loans, two of EUR 100 million each, due in 2016, 2020, one of EUR 200 million due in 2021 and one of SEK 1,000 million due in 2017.

In addition to its own liquidity, AB SKF had three committed credit facilities, one of SEK 3,000 million with due date 2018 and one of EUR 150 million with due date 2017 and EUR 500 million with a due date in 2019.

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