AS Tallink Grupp together with its subsidiaries (thereafter:Tallink) and all
it´s 15 lending banks have today jointly signed amendments to all of Tallink's
loan agreements.
Accordingly, the loan repayment schedules have been changed. During the
2009/2010 and 2010/2011 financial years the loan principal repayments will occur
only in the first and fourth financial quarter and no repayments will occur in
the second and third financial quarter which is the low season for Tallink
operations. The change means that the initially agreed loan principal repayments
will be reduced by 50% for the next two years. The reduced portion will be
deferred until August 2012 and will be thereafter repaid during the remaining
tenor of the loans. The loans' final maturities and interest payment frequencies
remain unchanged. The interest margins were increased, but it is estimated that
Tallink's interest expenses in 2009/2010 financial year will still be lower
compared to the 2008/2009 financial year.
As a result of the repayment restructuring, Tallink will repay bank loans in
amount of 60 million EUR (944 million EEK) during the current 2009/2010
financial year.
In conjunction with the above, the availability of current overdraft credit
lines to Tallink were granted for a further two years.
The repayment restructuring improves significantly Tallink's liquidity position
and gives more flexibility for Tallink to maintain sufficient working capital
for meeting present and future needs.
It was agreed with the lenders that Tallink the loan repayments and reduction of
the overall group's debt will be kept as high priority. The focus will be also
retained on selling or chartering Tallink's older and non performing vessels.
When reasonable and possible for Tallink, early prepayment of the deferred loan
portions will be applied. Until the deferred portions are repaid, Tallink shall
require the approval from the current lenders for new investments, dividend
distribution and new commitments out of ordinary course of business. At present
no such investments, distributions or commitments are planned by Tallink.
Janek Stalmeister
CFO
AS Tallink Grupp
Tel. +372 6409 800
Fax. +372 6409 810
E-mail: janek.stalmeister@tallink.ee