AS Tallink Grupp announces taking a loan in the amount of EUR 280 million. The financing is arranged by Nordea Bank Finland Plc, Norddeutsche Landesbank Girozentrale, Danske Bank A/S, KfW IPEX Bank GmbH, AS Swedbank, Skandinaviska Enskilda Banken AB ning HSH Nordbank AG. The payment- and security agent is Nordea Bank Finland Plc. The final maturity of the floating interest rate euribor based loan is six years.
The loan will be used to repay the outstanding balance of EUR 440 million loan taken in December 2012 and to strengthen the working capital position of the company.
As a result of the transaction Group’s refinancing risk decreases, repayment profile lengthens and yearly loan service burden declines.
The new loan is guaranteed by the subsidiaries of AS Tallink Grupp: Tallink Sea Line Ltd, Tallink Victory Line Ltd, Tallink Ltd, Tallink Autoexpress Ltd and Tallinn Swedish Line Ltd. The loan is secured by the mortgages on the ships belonging to these subsidiaries, excluding Tallink Autoexpress Ltd owned Silja Europa.
Due to early repayment of the loan the arrangement fees that were amortised over the period of that loan will be written off. As a result the Group will record one-off financial expense of EUR 1.6 million in Q4 2016.