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Tallink signs agreement on loan of up to EUR 100 mln with Kredex

BC, Tallinn, 08.06.2020.Print version
Listed Estonian shipper AS Tallink Grupp on Monday notified the Tallinn and Helsinki stock exchanges of signing a working capital loan agreement with SA Kredex. The total amount of the loan limit is 100 million euros and the loan can be drawn in tranches of 10 million to 40 million euros, informs LETA/BNS.

The interest rate on the three-year loan is 12-month Euribor + 2%. The loan is secured by mortgages on five vessels ranking after the existing creditors.


In addition to the loan agreement signed with Kredex, an agreement reached with the company's lending partners regarding deferring existing loan repayments in 2020 in the amount of 61 million euros entered into force on May 29. The loans' final maturities and interest margins remained unchanged, Tallink said in a press release.


The repayment rescheduling improves Tallink's liquidity position significantly and gives more flexibility for Tallink to maintain sufficient working capital in these challenging times, the company  said.

"Signing the loan agreement with Kredex and reaching the agreement with our lenders regarding loan repayment deferral, sets the company in a good position for continuing our operations during the economic crisis created by the coronavirus pandemic and for restoring our core operations this year," Paavo Nogene, CEO of Tallink Grupp, said. 


In addition to these agreements, Tallink will continue to work hard to find additional solutions and opportunities as well, such as the agreement already reached with Danske bank regarding an extended credit facility, the CEO added.  






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