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25.02.2015

HB Grandi: Debt financing of two pelagic vessels completed

HB Grandi has previously announced its contracts with the Turkish shipyard Celiktrans Deniz Insaat Ltd. for the construction of two pelagic vessels, expected to be delivered in 2015. The first vessel will replace two 55-year-old pelagic vessels: Víkingur AK 100, which has already been sold, and Lundey NS 14. The new vessels will be called Venus NS 150 and Víkingur AK 100. Once this transaction is completed, the average age of the company’s fleet will decrease from 33 to 23 years.

The company has completed debt financing for the vessels, as well as the refinancing of older long-term loans, with Arion banki hf. and DNB Bank ASA. The total amount is EUR 77,000,000, to be drawn down in three tranches, with the term of each drawdown being 5 years. It is assumed that the loan drawdown and instalments for each loan section will be divided in the following manner:

- The first drawdown, amounting to EUR 32,000,000, will take place in March 2015. The loan section will be paid in 18 quarterly instalments, amounting to EUR 533,334 each, as well as a final payment in 5 years, amounting to EUR 22,399,988.

- The second drawdown, amounting to EUR 22,500,000, will be concurrent with the delivery of the first vessel in April/May 2015. The loan section will be paid in 9 instalments every 6 months, amounting to EUR 750,000 each, as well as a final payment in 5 years, amounting to EUR 15,750,000.

- The third drawdown, amounting to EUR 22,500,000, will be concurrent with the delivery of the second vessel at year-end 2015. The loan section will be paid in 9 instalments every 6 months, amounting to EUR 750,000 each, as well as a final payment in 5 years, amounting to EUR 15,750,000.

The loan agreement carries variable interest, with the current average interest being 2.8%.

The above dates can change in the case of a delay in the delivery of the vessels. Part of the loan will be used to refinance current liabilities due to accrued payments in connection with the shipbuilding.

Further information will be supplied by:
Jónas Guðbjörnsson, CFO, tel.: 858 1031.

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