The new loan consists of a Term Loan Facility of EUR 550 million in addition to two Revolving Credit Facilities of EUR 350 million. The new loan facility will replace existing interest bearing operational debt in Pan Fish and Marine Harvest and partly finance the acquisition.
There are two financial covenants related to the facilities; Gearing ratio (ratio of net interest bearing debt to EBITDA) and Equity ratio (ratio of consolidated total equity to consolidated total assets). The Gearing covenant decrease from 4.5 at the start of the period to 3.0 from and including 31.12.2008. The equity ratio starts at 35% and increase to 40% from and including 31.12.2007. The equity in Pan Fish at take-over is expected to be in the area of 45%.
The interest rate margin will vary between a minimum of 60 basepoints and a maximum of 150 basepoints above LIBOR. It is expected that the company will achieve a margin in the absolute lower end of the range already in 2006. The loan has a term to maturity of 5 years.
- It is a milestone for both the company and the industry that it has been possible to place this loan in the international banking market and with leading foreign banks in addition to DnB NOR. Through this agreement we now have a long term financing at very competitive terms and conditions. Still it is a firm target from the company's Board and management to make use of the strong cashflow that we generate from today's high salmon prices to achieve a rapid reduction in the gearing ratio and to strengthen the company's solidity further, says CFO Trine Sæther Romuld.
The combined financing package has been established during a very short time frame and is an example of a unique co-operation between Pan Fish and DnB NOR. The latter has been leading the process of establishing this substantial financing.
Additional banks will be included in the Syndicate and it is the company's objective that the main banks in the existing Pan Fish syndicated loan, hereunder Nordea, which has contributed significantly to re-establishing the company over the last few years, will play a key role in the final structure.
For additional information:
CFO Trine Sæther Romuld, +47 991 63 632
Director Finance and Treasury Lars Christian Blåsternes, +47 415 01 251
The press release can be downloaded from the following link:
