Hoegh Autoliners has secured long-term financing for purchases, newbuildings and repayment of bank debt.
A new $720m six-year fleet facility will finance the purchase of two 6,500-ceu vessels, the Hoegh Jacksonville and Hoegh Jeddah (both built 2014), four Aurora newbuildings and to settle existing bank debt.
“Hoegh Autoliners is now fully financed at attractive terms into 2030,” finance chief Per Oivind Rosmo said in a statement.
The facility has reduced interest rates and is covenant-light.
“Cash capacity cost and breakeven cash rates are historically low, giving solid cash returns in today’s market and increased resilience through the cycle,” Rosmo said.
The Oslo-listed car carrier owner has already drawn $350m, with an additional $90m earmarked for the purchase of the Hoegh Jacksonville and Hoegh Jeddah, slated for delivery in April and September 2024, respectively.
“All mortgage debt is secured with the most modern and fuel-efficient part of our fleet and newbuilds,” he added.
The remaining $280m will be drawn upon the delivery of Aurora newbuildings 1,2,5 and 6.
Notably, the facility is secured solely against the six Horizon-class ships only, leaving the other 24 owned vessels debt-free.
Hoegh Autoliners has a fleet of 30 ships, with 12 LNG-capable and methanol and ammonia-ready Aurora-class vessels on order.
The facility is structured as partly term loan and partly revolving credit facility to provide flexibility in amortisation.
Minimum annual amortisation is considerably reduced compared to previous arrangements, aligning with the age profile of financed vessels.
Additionally, the company has secured a $200m non-amortising, four-year credit facility, enhancing liquidity reserves.
“With 24 owned vessels being debt free, attractive and flexible amortisations, only $30m left in equity instalments for the 12 newbuilds, and the additional liquidly reserve of $200m, the company is in a unique position to continue to create shareholder value,” Rosmo said.
Lenders for both facilities are Citibank, BNP Paribas, ING Bank, CA-CIB, DNB, Danske Bank, SEB and Nordea.
Also, eight newbuildings are financed long-term by the Bank of Communications.
