This new credit facility secures Marel’s long-term funding at more favourable terms and improves the maturity profile. The new financing will replace the previous facility last amended and extended in 2017, that composed of a EUR 153 million term loan, USD 75 million term loan, and a EUR 323 million revolving credit facility.
The term of the new credit facility is for five years with two one-year extension options with final maturity in February 2027 if utilized.
Interest terms are EURIBOR/LIBOR +80bp and will vary in line with Marel’s leverage ratio (Net debt/EBITDA) and the facility utilization level. Going forward and subject to utilization levels, the interest and financing costs are expected to decrease as the new facility includes more favorable terms.
The facility will allow Marel to utilize its cash balances better and increase the strategic flexibility to support future growth. The facility is based on investment-grade Loan Market Association documentation.
The new credit facility includes a sustainability-linked incentive structure where Marel agrees to meet a set of sustainability key performance indicators (KPIs). Based on the extent to which the KPIs are met, Marel will either receive a margin reduction or margin increase. Marel is a signatory of the United Nations Global Compact since 2015 and has complied with the NASDAQ ESG reporting guidelines since 2017.
Linda Jónsdóttir, Chief Financial Officer of Marel:
“The successful closing of the new EUR 700 million syndicated senior credit facility is an acknowledgment of our financial strength and the confidence our long-term banking partners have in Marel.” noted Linda Jónsdóttir CFO of Marel. “The improved terms and conditions of this new facility will give us more operational and strategic flexibility to achieve our long term goals. We’re especially pleased to include the sustainability link, which supports Marel's strong commitment to the ESG guidelines and to fulfilling its vision of a world where quality food is produced in a sustainable and affordable way.”
The refinancing was led by a syndicate of seven leading international banks; ABN AMRO, BNP Paribas, Danske Bank, HSBC, ING Bank, Rabobank and UniCredit. The syndicate mirrors Marel’s geographical presence and is thus well placed to support Marel’s business going forward. The facility was signed on the 5th of February and closing is expected to take place in the coming days, subject to standard conditions precedents.