Norwegian operator Havila Kystruten AS, known internationally as Havila Voyages, has completed a major refinancing package worth €456 million. The agreement provides long-term security and supports the company’s strategy to prepare for the renewal of the government coastal service contract.
The new solution spans 15 years and covers all outstanding bond obligations and shareholder loans without issuing new equity. Covered in the refinancing are:
After transaction costs, the company gains around €4 million in additional liquidity, allowing greater operational flexibility.
The restructuring lowers Havila’s effective interest rate to around 10%, a substantial improvement compared to previous double-digit financing costs. The agreement also includes an option to terminate the financing fully or partially beginning in year three.
The refinancing is structured as a long-term financial lease provided by a wholly owned subsidiary of Havila Holding AS, the group’s majority owner. The model aligns with Havila’s revenue streams as well as the vessels’ residual values.
The solution fully replaces all outstanding bonds maturing in 2027 and shareholder loans due in 2027 and 2028. Havila states that the company is now fully financed for the entire remaining term of its current state contract with Norwegian authorities.
The current coastal route contract, jointly operated by Havila and Hurtigruten, runs until 2030. Afterwards, the service will be tendered again for a further ten-year period. With the refinancing secured, Havila can focus on optimising operations, enhancing its energy-efficient concept, and strategically positioning itself for the next tender round.
More on Havila Voyages.
Header: © Havilla Voyages