Oslo-listed Faroe Islands grower, Bakkafrost, has secured a deal with its lenders and the owners of its debt to refinance its credit agreements and an outstanding NOK 500 million (EUR 52 million) bond due to mature by the end of March, 2018.
The refinancing streamlines company debt and lending into a five-year EUR 200 million credit facility with Bakkafrost’s lender, Nordea. An “accordion increase option” allows the company to secure a new credit facility for up to another EUR 200 million within the five-year period.
A decent equity ratio of below 35-percent of the company’s market or book value and a healthy earnings line were cited by the lender as reason enough for the fix.
Bakkafrost indicated in a statement that it was pleased to not have so much interest to pay and for the flexibility this offered.