Havila Voyages has entered into an agreement to refinance its 456 million euro of outstanding debts, the company announced in a press release.

According to the statement, the agreement provides 15-year financing to ensure predictability and room for maneuvering.

The deal is also said to ensure the continued operation and development of Havila’s coastal route between Bergen and Kirkenes.

“With this agreement, we obtain a long-term and more predictable financing solution that significantly reduces our financing costs,” said Bent Martini, CEO of Havila Voyages.

“This will give us the peace of mind to focus on what we are supposed to be best at: delivering on the assignment we have been given by the Norwegian authorities and offering memorable experiences along the Norwegian coast for guests from all over the world,” he continued.

The new agreement was announced on the Oslo Stock Exchange on Tuesday. Havila said that the transaction is now expected to be completed by November 25.

The company added that the refinancing covers all of its bond debt and shareholder loans, without the issuance of new equity.

Havila added that the solution refinances approximately 331 million euros in secured senior bonds and approximately 116 million euros in unsecured shareholder loans.

After transaction costs, the solution provides the company with around 4 million euros in additional liquidity.

The company’s effective interest rate is reduced from double-digit levels to a total cost of around ten percent, with the option to redeem the agreement as a whole or in part from year three.

“We have been through a demanding period with high financing costs. We are now getting a structure that is both more sustainable and better adapted to our operations. This gives us greater financial robustness and better conditions for strengthening our offering to both local communities along the coast and other travelers,” Martini added.

The refinancing is structured as a 15-year financial leasing agreement provided by a wholly owned subsidiary of Havila Holding AS, the company’s majority shareholder.

The agreement is tailored to both Havila Voyages’ revenue streams and the residual value of the vessels.

“The fact that our majority owner is stepping up with such a long-term financing solution is a strong vote of confidence in the company, our employees and our concept. It shows that the owners believe in Havila Voyages as a long-term project and, not least, as an important service along the Norwegian coast,” Martini said.

The refinancing fully redeems the company’s existing bond debt maturing in January 2027, as well as existing shareholder loans maturing in 2027 and 2028. It further ensures that Havila Voyages is fully financed for the entire remaining term of its current coastal route contract with the Norwegian authorities.

“This agreement allows us to look ahead. We can concentrate on optimizing our operations, further developing our green and energy-efficient offering and positioning ourselves as well as possible for the renewal of the state’s coastal route contract. This is important for our guests, our employees and the coastal communities we are tasked with serving,” he added.

Havila Voyages noted that the new agreement is a solution that can be optimized or refinanced at a later stage, once the operational ramp-up has progressed further and the business model has been further proven in the market.

“We have now put in place robust and flexible financing that gives us time to demonstrate the profitability of our operations over time. When we have a better track record and higher volumes, we will be able to assess whether the market can offer even better terms. What matters now is that we have a solid platform to build on,” Martini said.