Havila Kystruten AS: Entry Into Comprehensive Debt Refinancing Agreement

Core Viewpoint - Havila Kystruten AS has successfully entered into a comprehensive refinancing of its outstanding debt totaling EUR 456 million, expected to close by November 25, 2025, providing the company with long-term financial stability and flexibility [1] Debt Refinancing Details - The refinancing involves approximately EUR 331 million of senior secured bonds and EUR 116 million of unsecured shareholder loans, providing an additional EUR 4 million in liquidity net of transaction fees [2] - The effective interest cost is significantly reduced from high double-digit levels to approximately 10 percent, with call options available from year three [3] Financing Structure - The refinancing is structured as a 15-year financial lease facility, divided into a senior EUR tranche of 250 million, a senior USD tranche of 105 million, and a junior EUR tranche of 116 million [4] - The total hire equivalent of the financial lease facility is EUR 150,000 per day, with a fixed portion related to senior tranches and a variable portion related to the junior tranche [5] Debt Repayment and Future Operations - The refinancing fully repays existing bond debt and shareholder loans maturing in 2027 and 2028, ensuring the company is financed through its current contract with the Norwegian government [6] - The refinancing allows the company to focus on optimizing operations and preparing for the renewal of the governmental contract for the Coastal Route [6][7] Board Approval and Advisory - The refinancing package has been approved by the Board of Directors, which considered it the best alternative after a thorough assessment of financing structures [8]