Bergen Group ASA has accepted an indicative term sheet from a bank syndicate for a refinancing of the Group. The refinancing will mainly be used to strengthen the liquidity of the Group’s ongoing shipbuilding projects, to be completed during first half of 2014.
Bergen Group’s Shipbuilding Division has for a long period experienced pressure on the liquidity due to large losses in the division. The losses have also led to a situation where ongoing shipbuilding projects for a period have had to be financed with a larger amount of equity in anticipation of the construction loan to be opened. The refinancing ensures a satisfactory progress and funding for the three ongoing shipbuilding projects to be completed and delivered within 1st half of 2014. The refinancing is based on the following main elements:
– An increase of the existing construction loan on NB88 (Fjord Line) with NOK
150 million, of which NOK 65 million has already been paid out.
– A refinancing of the offshore division based on a new loan of NOK 180 million, of which NOK 50 million goes to the repayment of existing debt to SR-Bank while the remaining NOK 130 million is to be used on NB88 (Fjord Line) plus NB90 and 91 (Volstad). The loan is due for repayment with NOK 30 million on 31 March 2014 and NOK 150 million on 30 June 2014.
– An unsecured loan of NOK 20 million to Bergen Group AS from Flyfisk AS (which is controlled by Magnus Stangeland, one of the Group’s main shareholders) The loan is due for repayment on 30 June 2014.
The Group is also working with establishing long term financial solutions related to the progress and completion of NB90 and NB91 at Fosen. These two shipbuilding projects, both to be built for Volstad Maritime AS, will be completed in respectively Q4 2014 and Q2 2015.
The Shipbuilding division is planned to be transferred to NorYards AS in Q1 2014, where the Luxemburg-registered company Calexco will becomes majority owner and Bergen Group ASA retains 49% of the shares for the time beeing.
Bergen Group will during the 1st half of 2014 work with a long term financing of the Group, in order to refinance existing debt obligations, as well as, strengthening the ongoing process of further developing the industrial area at Hanøytangen as a leading international center for service and shipbuilding activities related to the offshore industry, subsea services and maritime industry.
[mappress]
Bergen Group, December 19, 2013