Norway’s roro Höegh Autoliners secures long-term fresh financing for all its existing bank debt and the purchase of H. Jacksonville and H. Jeddah as well as four of the Aurora newbuilds. The company has also secured additional liquidity reserves.
The Oslo-based operator of around 40 roro vessels said it had recently struck a 6-year tenor new fleet facility with reduced interest rates.
As it is reported by the operator, the total facility size is $720m, out of which $350m is already drawn and the other $90m will be drawn in connection with the purchase of H. Jacksonville and Höegh Jeddah, with delivery in April and September 2024.
The remaining $280m will be drawn in connection with the delivery of the Aurora newbuilds number 1,2,5 and 6.
Höegh Autoliners noted that secured vessels under the facility are the 6 Horizon class vessels only, leaving all other owned vessels 24 in the fleet debt-free. (H. Jeddah, H. Jacksonville and the four Aurora vessels will be pledged when the debt is drawn).
The facility is structured as partly term loan and partly RCF, giving the company flexibility when it comes to amortization, reads Höegh’s statement.
Höegh also explained that “minimum annual amortization is considerably reduced compared to the previous facility given the age structure of the financed vessels.”
In addition to the $720m fleet facility, the company has secured a $200m non-amortizing, four-year credit facility. This facility is currently undrawn and will serve as an additional liquidity reserve and provide flexibility for future capital allocation.
The lenders in both facilities are Citibank, BNP Paribas, ING Bank, CA-CIB, DNB, Danske Bank, SEB and Nordea.
The other eight newbuilds are all financed long-term by Bank of Communications at attractive terms, as Höegh added.
Per Øivind Rosmo, CFO of Höegh Autoliners, said: “Höegh Autoliners is now fully financed at attractive terms into 2030. Cash capacity cost and break-even cash rates are historically low giving solid cash returns in today’s market and increased resilience through the cycle.
“All mortgage debt is secured with the most modern and fuel-efficient part of our fleet and newbuilds.
“With 24 owned vessels being debt free, attractive and flexible amortizations, only USD 30 million left in equity instalments for the 12 newbuilds, and the additional liquidly reserve of USD 200 million, the company is in a unique position to continue to create shareholder’s value.”
