Scandlines has clinched a EUR 862m ($991m) refinancing in a deal with European and US banks.
The cash comprises a six-year bank loan, an 11-year institutional tranche and associated revolving credit and liquidity facilities, the German-Danish ro-pax group said.
The debt has been structured on a secured infrastructure-style basis and is rated BBB by Fitch.
Scandlines said the refinancing "substantially reduces" the long term cost of debt and is a further step in its development.
It also pointed to recent streamlining of the business to concentrate on providing high-frequency connections between continental Europe and Scandinavia.
CFO Per Madsen told TradeWinds that old bank debt was being refinanced, plus previous construction financing of two new vessels delivered for the Gedser to Rostock route in 2016.
He confirmed interest rates are lower on the new tranches.
The eight ferries carried 7.6m passengers in 2016, plus 1.8m cars and 0.6m freight units.
It posted a drop in 2016 net earnings in the first quarter despite rising revenue.
Profit was EUR 81m, down from EUR 107m in 2015.
Its German and Danish state owners sold out to two investment funds, 3i Group and Allianz Capital Partners, in 2007, with Deutsche Seereederei also taking 20%.
At the end of 2010, Deutsche Seereederei disposed of its stake to the partners, with 3i then acquiring Allianz's stake in 2013 to become the sole owner.
As part of a strategic reorientation, Scandlines sold its freight-based routes between Germany and Sweden, as well as the freight routes in the Baltic States and Finland.
