Höegh Autoliners ASA has recently secured new and long-term financing for all its existing bank debt and the purchase of H. Jacksonville and H. Jeddah as well as four of the Aurora newbuilds. The company has also secured additional liquidity reserves.
The new fleet facility has a 6-year tenor, comes with reduced interest rates and is covenant-light. Total facility size is USD 720 million, out of which USD 350 million is already drawn and the other USD 90 million will be drawn in connection with the purchase of H. Jacksonville and Höegh Jeddah, with delivery in April and September 2024 respectively. The remaining USD 280 million will be drawn in connection with the delivery of the Aurora newbuilds number 1,2,5 and 6. Secured vessels under the facility are the 6 Horizon class vessels only, leaving all other owned vessels (24) in the fleet debt-free. (H. Jeddah, H. Jacksonville and the 4 Aurora vessels will be pledged when the debt is drawn). The facility is structured as partly term loan and partly RCF, giving the company flexibility when it comes to amortization. Minimum annual amortization is considerably reduced compared to the previous facility given the age structure of the financed vessels.
In addition to the USD 720 million fleet facility, Höegh Autoliners has secured a USD 200 million non-amortizing, four-year credit facility. This facility is currently undrawn and will serve as an additional liquidity reserve and provide flexibility for future capital allocation.
The lenders in both facilities are Citibank, BNP Paribas, ING Bank, CA-CIB, DNB, Danske Bank, SEB and Nordea. The other 8 newbuilds are all financed long-term by Bank of Communications at attractive terms.
Per Øivind Rosmo, CFO of Höegh Autoliners comment: “Höegh Autoliners is now fully financed at attractive terms into 2030. Cash capacity cost and break-even cash rates are historically low giving solid cash returns in today’s market and increased resilience through the cycle. All mortgage debt is secured with the most modern and fuel-efficient part of our fleet and newbuilds. With 24 owned vessels being debt free, attractive and flexible amortizations, only USD 30 million left in equity instalments for the 12 newbuilds, and the additional liquidly reserve of USD 200 million, the Company is in a unique position tocontinue to create shareholder’s value”.