Credit approved term sheet for refinancing of debt, stronger financial position
Eidesvik Offshore ASA (“Eidesvik” or the “Company”) is pleased to announce that it has agreed on a term sheet (“Term Sheet”) with its financial institutions for refinancing of its debt. With a combination of extension of debt maturities and reduced amortization payments, the agreed terms will significantly strengthen the Company’s financial position. The Company and its financial institutions are working on final documentation and expect to have final agreements in place during September 2021.
The agreed terms provide mechanisms for extension of final maturities of debt facilities from the end of 2022 to the end of 2023. This implies that there will be no final maturities until year end 2023. The extension is subject to Eidesvik meeting certain financial and operational triggers.
Fixed amortization payments will be significantly reduced. Upon agreeing and signing final documentation, debt repayments of approximately NOK 309 million will be made. There will be no further fixed debt amortization in 2021. Scheduled amortization for 2022 will be reduced from approximately NOK 311 million to NOK 106 million. For 2023, the fixed amortization will be approximately NOK 71 million. Interest will be paid as normal during the period.
In addition to fixed amortization, a cash sweep mechanism has been agreed. The cash sweep will be used for additional debt repayment if cash levels are above certain thresholds, on a facility-by-facility basis. The new facility cash sweep mechanism replaces the current corporate cash sweep mechanism.
Jan Fredrik Meling, CEO & President, comments:
“We highly appreciate the support and confidence our financial institutions are giving us. The agreed terms significantly strengthen our financial position. With our existing backlog and strong operations, we are confident that we will meet the financial triggers required to automatically extend the final maturities to end 2023. The new agreement enables our organization to keep full focus on continuing to deliver strong commercial and operational performance, as well as further building on our strong customer relationships. Further, we will continue developing our position as the leading company deploying environmentally friendly technology and solutions to offshore vessels and offshore operations.”
Bømlo, August 27, 2021
CEO Jan Fredrik Meling (+47 916 75 119)
CFO Tore Byberg (+47 475 09 012)
This information is prior to this publication considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to forecasts, projections and estimates, statements of management’s plans, objectives and strategies for the Company, such as planned expansions, investments or other projects, management, as well as statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized.
No assurance can be given that such expectations will prove to have been correct. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This stock exchange announcement was published by Lars Tufteland Engelsen, Finance Manager at Eidesvik AS, on August 27, 2021 at 17:22 CET.