Estonia’s Tallink has landed fresh financing that will help it repay outstanding debt and strengthen its financial position.
The ferry and ro-ro owner has signed a loan agreement of EUR 280m ($290.3m) with a consortium of banks.
Nordea Bank Finland, Norddeutsche Landesbank Girozentrale, Danske Bank, KfW IPEX, Swedbank, Skandinaviska Enskilda and HSH Nordbank are coming up with the cash.
The six-year loan facility will be used to repay a 2012 loan of EUR 440m and will also boost the working capital position of the company, Tallink explained.
It added: “As a result of the transaction, the group’s refinancing risk decreased, repayment profile lengthens and yearly loan service burden declines.”
Some subsidiaries of the group will act as guarantors while Nordea will act as payment and security agent.
Tallink will record a one-off expense of EUR 1.6m in the fourth quarter due to early repayment of the previous loan.
