Havila Kystruten revises terms for refinancing, opts for private debt

By Marisa Wong

Los Angeles, June 27 – Havila Kystruten AS has received a term sheet from an institutional investor for a private debt solution that it considers more attractive than the terms of its previously proposed bond issue, according to a notice on Tuesday.

Additional institutional investors have communicated that they are contemplating providing terms for a similar private bilateral debt solution. The company said, as a result, it has decided to pursue that alternative track and engage with said parties.

Last week the company had announced plans to sell, through subsidiary Havila Kystruten Operations AS, €325 million of three-year senior secured first-lien bonds, as reported.

Havila Kystruten originally announced on May 31 that it was contemplating a €390 million bond sale.

After communicating with potential investors, the company revealed a revised refinancing plan, which included €325 million of bonds and a roughly €65 million private placement of stock.

An extraordinary general meeting had been summoned to be held on Tuesday to resolve the equity private placement. On Tuesday, the company said the meeting will be held as planned, but because the debt instrument differs from the originally proposed bond structure, the subscribers in the equity private placement will be asked to reconfirm their orders at a later stage.

Arctic Securities AS, Fearnley Securities AS and Nordea Bank Abp, filial i Norge are acting as managers for the contemplated refinancing.

Wikborg Rein Advokatfirma AS and Advokatfirmaet Thommessen AS are acting as legal counsel to the company and the managers, respectively.

As noted before, proceeds will be used to refinance all group debt and fund the final yard installment of Havila Polaris and Havila Pollux, both of which are ready for delivery from the Tersan Shipyard.

Havila Kystruten is a Fosnavag, Norway-based shipping company.

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