Cruise company Havila Kystruten has secured $78m in financing from parent company Havila Holding.
The Saevik family-owned Havila Holding has given €56m ($60m) in loans to the Oslo-listed cruise firm for a bond refinancing, according to a statement.
The new shareholder will finance the redemption of a secured bond loan with HPS Investment Partners, originally amounting to €50m, along with related redemption costs and accrued interest.
The new loan from Havila Holding is unsecured, with interest accruing, and the loan matures in full on 26 July 2028.
The transaction addresses the refinancing needs of Havila Kystruten due in October 2024.
The loan replaces secured debt with unsecured debt at a lower cost and it can be repaid at any time without redemption costs.
Havila Kystruten’s first loan maturity is now on 26 July 2026.
In addition, Havila Kystruten has established a revolving credit facility of NOK 200m ($18m) from Havila Holding, providing the company with increased financial flexibility to manage seasonal liquidity fluctuations.
The new facility has a term until 26 January 2027, but can be drawn and reduced as needed.
“The company’s board has evaluated various options within the flexibility of the loan agreement for the remaining secured bond (Series A Bonds of $255m), and believes that overall, this is the best solution for the company,” Havila Kystruten said.
The financing enables Havila Kystruten to focus on the operation of its four new coastal vessels.
“In the long run, this will enable a more long-term and sustainable financing that better reflects the underlying vessel values and the company’s solid earnings potential,” Havila Kystruten said.
Havila Kystruten new finance chief Aleksander Roynesdal joined in March.
Chief executive Bent Martini said then: “We are now entering a phase where we need to find long-term and sustainable financing for our company.”
“Aleksander will naturally play an important role in this, and, with his broad experience and expertise, we are confident that we will find good solutions for Havila Voyages that will strengthen us financially,” Martini added.
The shipowner said 63% of capacity for the year is now booked, and an average occupancy of just under 80% is expected for 2024.
