Landbased salmon farmer Atlantic Sapphire today announces that it has entered into a committed term sheet with Norwegian bank DNB for a US$210 million senior secured credit facility comprised of a US$180 million term loan and US$30 million revolving credit facility.
The proceeds of the facility will be used to (i) refinance the company’s outstanding debt, which includes a US$54 million term loan and US$15 million revolving credit facility; (ii) finance the expansion of its Bluehouse facilities in the United States and (iii) increase liquidity as well as provide working capital for the company’s Danish and US operating subsidiaries.
The contemplated expansion of the US Bluehouse will increase annual production capacity to approximately 20,000 tonnes (HOG) in the US.
The facility will initially have an 18-month term with an 18-month extension option upon meeting certain conditions.
In addition, the company will be required to seek to transfer from the Merkur Market to the Oslo Børs, the main list of the Oslo Stock Exchange, no later than 31 December 2020.
“We’re happy to secure a refinancing at competitive market terms compared to the industry. For Atlantic Sapphire, this is a tremendous sign of support from DNB,” says Johan E. Andreassen, CEO & Chairman of Atlantic Sapphire.
Financial close is subject to the satisfaction by the company of various conditions precedent, including satisfactory due diligence and entering into legally binding documentation. The company expects to close the facility in Q2 2020.