Havila Kystruten is close to having the financing in place to add two sanctions-stricken ships to its fleet.
The Norwegian cruise operators said on Wednesday that the 640-berth Havila Pollux (built 2023) would hit the water on 12 August and the 640-berth Havila Polaris (built 2023) on 17 August as the company nears the finish line on two financing deals.
It said it had inked a term sheet with a “large global private credit fund” on a €305m ($332m) debt facility to refinance the two vessels currently operating and pay for the two ships still in the yard.
The company is still looking to raise €85m more, which could come in the form of an equity placement. It said negotiations are ongoing with prospective investors.
Last month, Havila Kystruten pulled out of a €325m bond sale, deeming the private debt facility a better option after evaluating the terms.
It also raised €65m in a private share placement.
Delivery of the two ships have been held up as Havila Kystruten had originally obtained financed through Moscow-based JSC State Transport Leasing Co, also known as GTLK. The outfit was sanctioned by Western governments following Russia’s invasion of Ukraine.
In May, Havila Kystruten got the go-ahead from US and UK authorities to secure new financing after being fined by Norwegian authorities.
The ships were built at Tersan Shipyard in Turkey, as were the company’s existing ships: the 640-berth Havila Capella (built 2021) and the Hvaila Castor (built 2022).
The private debt deal has a cash interest of 3-months Euribor plus 6% and payment-in-kind interest of 3.5%.
If certain financial milestones are reached, the total interest can be reduced to Euribor plus 7.75%.
The company operates the vessels on cruises along the west coast of Norway.
