Havila reaches agreement with banksCompany News // January 6, 2016
Havila Shipping has completed a refinancing deal with its banks which it says will help secure the future of the company until 2018.
The company says the key elements it needs to survive are now in place. New equity in the amount of NKr 200 million (US$22.4 million) has been issued.
However, Havila said the most important element of the agreement with its banks are a sharp reduction in loan repayments – down from NKr 534 million in annual instalments to about NKr 150 million and conversion of interest to debt for the period 2016 to 2018, along with changes to the maturity dates of balloon payments for unsecured liabilities to 30 June 2020 and unsecured liabilities to 31 December 2020.
Njål Sævik, chief executive officer of Havila Shipping, said he was very pleased to have reached agreement with the banks. “The company will not be secured until both the equity issue and a deal with the bondholders are in place. But the agreement with the banks is obviously an important step in the right direction." He said the deal is also important because it demonstrates that the company's banking partners have faith in the company in the long term.
Havila now has to finalise a similar deal with bondholders by the end of January, and raise NKr 200 million in new equity by 15 March. The Sævik family, which owns 51 per cent of the company, has provided a guarantee for NKr 102 million of the equity issue through their holding company, Havila Holding.