Norway’s Höegh Autoliners has secured $920m in new financing for newbuilds, secondhand purchases, repayment of existing debt and bolstering liquidity.
The Oslo-listed operator of around 40 car carriers said it had recently struck a deal with eight lenders for a six-year $720m fleet facility with reduced rates. An amount of $350m has already been drawn, while $90m will be utilised for the purchase of the 6,500 ceu Höegh Jeddah and Höegh Jacksonville and the remaining $280m to finance four Aurora class 9,100 ceu newbuilds.
The deal, structured as a term loan and a revolving credit facility, is secured by six ships, excluding the Höegh Jeddah and Höegh Jacksonville and the four newbuilds which will be pledged when the debt is drawn. Höegh noted that the facility’s minimum annual amortisation had been considerably reduced compared to the previous deal “given the age structure of the financed vessels”.
In addition, the company has secured a $200m non-amortising, four-year loan that is currently undrawn and that will serve as an additional capital firepower. The lenders in both facilities are Citibank, BNP Paribas, ING Bank, CA-CIB, DNB, Danske Bank, SEB and Nordea.
“Höegh Autoliners is now fully financed at attractive terms into 2030, said Per Rosmo, finance chief at Höegh Autoliners. The other eight newbuilds are all financed long-term by China’s Bank of Communications.
“With 24 owned vessels being debt free, attractive and flexible amortisations, only $30m left in equity instalments for the 12 newbuilds, and the additional liquidly reserve of $200m, the company is in a unique position to continue to create shareholder’s value,” Rosmo added.
