Future secure for food firm Marel

Marel Food Systems has secured long-term financing to the tune of €171m, which the company hopes will stabalise its future.

Marel Food Systems has said it has repaid in full a class of bonds listed on the OMX Nasdaq Iceland where a new class of bonds with maturity in November 2011 has been issued in the amount of 3.6bISK, equivalent to €21m.

Marel CEO Theo Hoen said: “We are grateful for the trust shown by our creditors. They share our view that the long-term prospects of our business are good. With stable financing we can now shift our focus fully to our daily operations with the aim of getting back on track in 2010. Our goal is to return operational profits (EBIT) of 10-12% compared to sales.”

A club loan in the amount of €116m has now been provided by Islandsbanki, NBI and New Kaupthing Bank and all derivative contracts have been fully closed and a 5-year loan in the amount of €34m has been provided by Glitnir.

Árni Oddur Thordarson, Marel chairman, added: “The Icelandic banks showed their strength in joining forces in securing long-term financing for Marel Food Systems. We are very pleased with the trust shown by pension funds and various other institutional investors who participated in our bond issue. In addition, a syndicate of Western European banks lead by Rabo bank provided in 2008 our business with long-term loans with maturity in 2016 and 2017.”

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