Marel inks new €700 million sustainability-linked credit facility

By Rebecca Melvin

New York, Feb. 5 – Marel hf said it has signed a new sustainability-linked syndicated revolving credit facility for €700 million, with a five-year term and two one-year extensions.

The new facility, with a final maturity in February 2027 if the extensions are used, replaces a previous facility last amended and extended in 2017. That one included a €153 million term loan, $75 million term loan and €323 million revolver.

The interest on the new facility is a rate of 80 basis points over Euribor/Libor and will vary with Marel’s leverage ratio 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 new facility will allow Marel to improve its use of cash balances and increase strategic flexibility. It is based on investment-grade Loan Market Association documentation, and includes a sustainability-linked incentive structure under which Marel agrees to meet a set of sustainability key performance indicators.

The food industry holding company is based in Gardabaer, Iceland.

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