The Norwegian shipping company Havila Kystruten has secured refinancing worth several hundred million euros. The aim is to strengthen liquidity with lower financing costs.
The shipping company, which operates on the Norwegian coast with passenger ships, announced at the Oslo stock exchange that a “comprehensive agreement to refinance the company’s outstanding debt totaling €456 million” has been concluded. The refinancing fully extinguishes the company’s existing bond debt maturing in January 2027 and existing shareholder loans maturing in 2027 and 2028. It also ensures that Havila Voyages is fully funded for the entire remaining term of its current state contract with the Norwegian authorities.
The refinancing is structured as a 15-year finance lease provided by a wholly owned subsidiary of Havila Holding AS, the majority owner of the company. The agreement is tailored to both Havila Voyages’ revenue streams and the residual value of the vessels.
Financing is planned for a term of 15 years, which should ensure planning security and room for maneuver for the continued operation and development of the mail ship route between Bergen and Kirkenes. It is due to be completed on November 25.
“This agreement provides us with a long-term and more predictable financing solution that significantly reduces our financing costs. This will allow us to focus on what we do best: fulfilling the mandate we have received from the Norwegian authorities and offering unforgettable experiences along the Norwegian coast to guests from all over the world,” said Bent Martini, CEO of Havila Voyages.
Significantly lower financing costs and increased liquidity
The refinancing reportedly covers all of the company’s bond liabilities and shareholder loans without issuing new equity. The new solution refinances approximately €331 million of secured senior bonds and approximately €116 million of unsecured shareholder loans. After deducting transaction costs, the solution provides the company with additional liquidity of around € 4 million. The company’s effective interest costs will be reduced from high double-digit figures to a total of around 10%, with the option to terminate the agreement in full or in part from the third year onwards.
“We have emerged from a difficult phase with high financing costs. We now have a structure that is both more sustainable and better suited to our business activities. This gives us greater financial stability and better conditions to strengthen our offer both for the local communities along the coast and for other travelers,” said Martini.
Long-term commitment of the majority owner
According to the CEO, the fact that the majority owner is providing such a long-term financing solution is “a strong vote of confidence in the company, our employees and our concept. It shows that the owners believe in Havila Voyages as a long-term project and not least as an important service along the Norwegian coast.”
Havila Voyages also sees the new agreement as a solution that can be optimized or refinanced at a later date, once the operational development has progressed further and the business model has continued to prove itself on the market.
