Havila Voyages secures stronger liquidity and balance sheet

Havila CapellaHavila Voyages (Havila Kystruten AS) has completed a refinancing that secures stronger liquidity and balance sheet for the company.

In a disclosure made in Havila Voyages’ Q4 2023 quarterly report, a planned refinancing of Series B of the secured bond loan, originally with a par value of EUR 50 million, was announced, along with related redemption costs and accrued interest.

Havila Voyages has today (18 April 2024) refinanced this loan through a EUR 56 million loan from Havila Holding AS in accordance with a financing guarantee entered into when the bond loan was issued. The loan from Havila Holding is unsecured and matures in full on July 26, 2028. This transaction addresses the refinancing need due in October 2024 and replaces secured debt with unsecured debt at a lower cost. In addition, Havila Voyages has established a so-called revolving credit facility of NOK 200 million from Havila Holding, which provides the company with increased financial flexibility to handle seasonal liquidity fluctuations.

“As a company, we have considered various alternatives within the constraints we had in the loan agreement for the remaining secured bond, and overall we believe this is the best solution for us,” says CEO Bent Martini.

Series A of Havila Voyages’ secured bond loan has a par value of EUR 255 million and was issued in July 2023 in connection with the delivery of Havila Polaris and Havila Pollux.

“With this solution, we ensure stronger liquidity and balance for Havila Voyages. Now we can focus on optimizing the operation of our four new coastal route ships and delivering on the operational goals we have set ourselves,” says Martini.

“Over time, this will also enable more long-term and sustainable financing that better reflects the solid underlying ship values and the good earning opportunities we have from operating ships along the Norwegian coast. There is no doubt that the bond loan is expensive for us, but with the challenges we faced with the original lender and the sanctions they were under, this was the only solution in the late summer of last year. The goal has always been to find solutions with lower costs, and this is a step further.”

Havila Voyages can also report that the positive development in bookings continues. Occupancy for the first quarter of 2024 ended at 68%, up from 60% in the fourth quarter of 2023. In total, 63% of capacity is now booked for the year, and an average occupancy rate of just under 80% is expected for 2024 as a whole.

“For a new company on a well-established route, we are very satisfied with our booking figures. We are getting positive feedback from previous guests. We see more people coming back to us and the awareness of us in the markets is growing. We are optimistic about the time ahead,” concludes Martini.

(Havila Voyages secures stronger liquidity and balance sheet – Havila Voyages)