Amendments to the loan agreements

11/12/2009

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.

Source: Tallink Group