Marel Food Systems hf. - Company Announcement

Marel Food Systems has secured long-term financing in the amount of EUR 171 million

Marel Food Systems has repaid in full a class of bonds (MARL 09 1) listed on
the OMX Nasdaq Iceland, which is due today, 20 May 2009. 
Average maturity of operational debts is over four years, with repayments from
Nov 2011 until May 2017. 

• A new class of bonds with maturity in November 2011 has been issued in the
amount of 3.6 billion ISK, equivalent to EUR 21 million. 
• A club loan in the amount of EUR 116 million has been provided by
Islandsbanki, NBI and New Kaupthing Bank. 
• All derivative contracts have been fully closed and a 5-year loan in the
amount of EUR 34 million has been provided by Glitnir. 
• Average margins of loans in the group have changed in one year from
Libor/Reibor + 300 bps to Libor/Reibor +450 bps  at same time as base rates
(Libor/Reibor) have significantly decreased. 

Theo Hoen, CEO of Marel Food Systems:
“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”. 

Árni  Oddur Thordarson, Chairman of Marel Food Systems:
“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”. 

Description of bond MARL 09 1
• Nominal value: 3,600 million ISK in units of one million ISK.
• Interest payments every six months, with the first payment on 1 November
2009.  Principal repaid in single payment 1st November 2011. 
• Interest terms: REIBOR + 500 bps.
• The bonds can be repaid at any time. 
• Conditional is that strategy and operations of Marel do not change; over 75%
of turnover is related to servicing the food processing industry. 
• Marel will not make acquisitions or other major investments  amounting to 
EUR 12,000,000 or more in such a way that financing of them have installments 
before 1 November 2011. 
• Marel will not mortagage the company's assets more than at the time of
issuing of this bond, except 2/3 of the bondholders approve it.  If
shareholders´ meeting resolves that dividend shall be paid to shareholders
before the bond has been fully paid or such payment offered, such resolution
will lead to deault of the bond.